Construction Week - Issue 322 by ITP Business Publishing

SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT

Construction An ITP Business Publication | Licensed by Dubai Media City

WEEK

CONSTRUCTIONWEEKONLINE.COM

MAY 22-28, 2010 [322]

NEWS, ANALYSIS, PROJECTS, TENDERS, CLASSIFIEDS, AND JOBS IN THE MIDDLE EAST CITY FOC JUBAILUS page 52

SPECIAL PROGRESS REPORT

ECONOMY OF SCALE SAUDI ARABIA’S ECONOMIC CITIES COULD CHANGE THE FACE OF THE INDUSTRY. CAN THEY SUCCEED?

INSIDE NEWS Small companies need big company attitudes to issues of safety PAGE 9

COMMENT Saeed Alabbar on the beneﬁts of concurrent engineering in engineer sustainable sustainab ble design PAGE 18 8

ANALYSIS What Abu Dhabi’s new HSE regulations mean for contractors PAGE 24

SITE VISIT Pre-cast and post tensioning works the Saudi Binladin way PAGE 35

CONTENTS MAY 22-28, 2010 | ISSUE 322 9

FEATURES

16 EVENTS: BUILDING SUSTAINABILITY CW previews the highlights of this year’s building sustainability conference in Riyadh.

18 COMMENT Sustainability consultant Saeed Alabbar looks at the pros of concurrent engineering.

20 LEGAL Quantity Surveyor Colm O’Suilleabhain on project risks and insurances.

22 TODAY’S BAGHDAD 22

Post-election: Is it still too dangerous? Are businesses taking the risk?

24 HEALTH CHEQUE CW looks at what new EHS regulations are likely to cost the industry.

28 BUILDING AT HEIGHT: CONFERENCE REPORT Find out what the experts had to say.

35 SITE VISIT CW reports on the activities of a concrete works run by the Saudi Binladin Group.

41 ECONOMIC CITIES A look at the price of diversity in KSA.

REGULARS 2 ONLINE 4 MAIL

FRONT

46 SHOWCASE: KAUST 35

King Abdulla University of Science and Technology is ranked a top green project.

DIRECTORY

The need for improved safety attitudes within smaller construction companies.

48 PRODUCT FOCUS 50 SECTOR FOCUS 52 CITY FOCUS 54 SPECIALIST SERVICES

10 TDIC BOND ACTIVITY

BACK

Suggestions of further activity in Abu Dhabi’s TDIC bond market.

56 DIALOGUE

9 SAFETY ATTITUDES

12 NEWS IN BRIEF Highlights of the week.

14 NEWS IN PICS

CW catches up with Rahamathulla, HSE and sustainability specialist, on the growth of HSE management software and the need to keep up with fastchanging HSE legislation. MAY 22–28, 2010 CONSTRUCTION WEEK

ONLINE

www.ConstructionWEEKonline.com

MOST POPULAR CONTRACTORS TO BID FOR STADIUM PROJECT – UPDATE MASSIVE FIRE AT NATIONAL PAINTS HQ IN SHARJAH DANUBE BOSS: SAUDI TO THRIVE BEFORE DUBAI RETURNS CORPORATE MANSLAUGHTER TO TAKE EFFECT IN THE UAE

HAVE YOUR SAY BURJ OBSERVATION DECK TICKET PRICES

Should they be lowered? Is it fair for ‘At the Top’ to charge as much as it does for viewing?

IN PICTURES: MOROCCO MALL, CASABLANCA Situated on Casablanca’s waterfront, Morocco Mall is designed to be a landmark structure in the city, built in the shape of a seashell. It is 650 metres long, clad in white fabric and glass and set to include an array of shopping outlets by some 250 luxury brands. Boasting three internal plazas, the mall will offer fashion shows, concerts and cabaret, as well as a huge shark aquarium holding one million litres of water. Currently under construction, it is due to open early next year. To read more visit www.ConstructionWeekOnline.com

FEATURES

JOBS OF THE WEEK Bilingual Secretary, Qatar Projects Administrator, Dubai Mechanical Engineer, Abu Dhabi

ONLINE POLL HOW SAFE IS YOUR WORK SITE?

33.3% 26.0% 24.0% 16.7% Satisfactory

Sector focus

Analysis

ADOPTING STANDARDS Is it time for a unilateral set of building codes and standards in the GCC?

TOP 5 AIRPORT PROJECTS CW looks at ﬁve of the biggest ongoing airport projects.

City update

Design

AL GHARBIA Why challenging times in Abu Dhabi are set to create a hotbed of building opportunities.

CREATING HARMONY Harmonious, nourishing spaces, and how they are shaping bathroom design.

CONSTRUCTION WEEK MAY 22-28, 2010

Excellent

Could be better

Poor

TO VOTE IN THIS WEEK’S SPOT POLL GO TO www.ConstructionWEEKonline.com

RMD KWIKFORM – SPECIALISTS IN CIVIL ENGINEERING FORMWORK AND FALSEWORK SOLUTIONS As the leading formwork and falsework specialist in the Middle East, RMD Kwikform has been delivering solutions to clients across the civils sector for over 30 years. RMD Kwikform’s engineering led proposition has become increasingly popular, leading to them delivering safe, cost effective formwork and falsework solutions to some of the regions most impressive civil engineering projects. With over 17 branches in the MENA region, RMD Kwikform has the capacity to supply equipment and resources to any scale of project.

DUBAI METRO – KEPT ON TRACK BY MEGASHOR “Heralded as one of the most strategically important infrastructure developments in the Emirates in recent years, RMD Kwikform’s Megashor heavy duty shoring system played a key role in the successful delivery of the Dubai Metro.”

Where RMD Kwikform excels is delivering solutions within the most demanding programme times, reassuring customers that projects can be delivered with the highest of quality, on time and on budget, Darren Ellwood, UAE General Manager explains:

CRITICAL DESIGN SUPPORT “For the team at our Sharjah headquarters, ensuring this project was kept on track was critical to its success. This resulted in us investing hundreds of hours of design time to supply all of the temporary support-work for the construction of the Metro’s elevated tracks, delivering solutions that added signiﬁcant value to the project.”

“The service RMD Kwikform offers throughout the Middle East combines the technical knowledge of our experienced staff with the capabilities of our industry leading equipment. Examples of projects that have beneﬁtted from this approach are the Dubai Metro, the Parallel Roads Project and more recently the Mafraq Interchange in Abu Dhabi.”

INTERNATIONAL REACH AND EXPERIENCE “RMD Kwikform’s international reach and experience played an important role in this project, as we were able to call upon a number of RMD Kwikform staff from Hong Kong who had worked on building a similar transport scheme using Megashor. “Although we were up against heavy competition from a variety of businesses, we had the equipment that the client trusted already on the ground, and the designers to provide the drawings for each location. Being such a large scale project this was essential, we were able to deliver the equipment and technical speciﬁcations for each support structure ensuring the installation went ahead smoothly, safely and to programme time. “Up to a dozen sections of the route were under construction at any one time, with RMD Kwikform supplying Megashor towers to site for erection within a very short time frame. This all led to the successful completion of the project.” MAFRAQ INTERCHANGE – DELIVERING INFRASTRUCTURE PROJECTS ON A GRAND SCALE Darren: “The sheer scale and management of the equipment used to deliver the Mafraq Interchange in Abu Dhabi shows just how important the capabilities and logistical expertise of your formwork and falsework supplier are.

“It was RMD Kwikform’s ability to provide over 10,000m3 of Rapidshor shoring and the expertise to quickly design and fabricate specialist parts that led to us being awarded the contract to supply falsework and formwork to the US$204 Million project. “The main challenge of the project was the rapid construction of three bridge structures, two measuring 980m in length and climbing up to 22m high and a third measuring 300m. We supplied a number of special components designed and fabricated specially for this project.” FLEXIBLE APPROACH TO HIRE OR PURCHASE “Due to the scale of the project and the client’s confidence in Rapidshor, we put together a deal that involved the part purchase and part hire of the equipment required for the job. This allowed the customer to facilitate the scale of the project whilst investing to benefit from using Rapidshor on future projects, knowing RMD Kwikform would be there in the future to support them.” SOLUTIONS TO EVERY CHALLENGE Darren concludes: “What makes RMD Kwikform stand out is our ability to say ‘Yes we can help’. No matter what the project, if it involves the creation of unique and challenging concrete structures, your first point of call should always be to one of my team at RMD Kwikform Middle East. So why not contact us with your challenge now by calling +971 6 553 4173, emailing rmd.uae@rmdkwikform.com or visiting www.rmdkwikform.com/ae.

VISIT RMD KWIKFORM ON STAND 3231 AT THE ARABIAN CONSTRUCTION WEEK EXHIBITION FROM 24TH MAY TO 26TH MAY 2010 AT THE ABU DHABI INTERNATIONAL EXHIBITION CENTRE

MIDDLE EAST RMD KWIKFORM MIDDLE EAST P.O. Box 5801, Sharjah, UAE Tel: +971 6 553 4173 Fax: +971 6 553 4327 Email: rmd.uae@rmdkwikform.com

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Tailored Solutions • Global Expertise

MAIL CORPORATE MANSLAUGHTER TO TAKE EFFECT IN THE UAE When management only wants to fulfill its legal obligation for safety, the primary goals of managers are to stay out of trouble, so they only do what has to be done to meet the minimum requirements. Management teams need to realise that long term corporate survival depends on giving value and making the most of the potential of every employee, treating them as a corporate family member. Managers who are motivated to invest in safety will understand the financial benefits derived from the effective application of safety programmes. SHERWIN S. YCAY The truth has finally come out: safety officers cannot implement HSE plans and policies, as they are not in control of budgets. CEOs and managing directors must realise that hiring a safety officer is like having another arm: separate but complimentary. Your safety officer fails? Then your CEO or director fails too. DENNIS M. BANDOJO It is good to see that the UAE government is focused on improving health and safety, however, I believe that better education, consultation and enforcement of existing standards must happen first. Currently, enforcement agencies are not easily engaged and the existing enforcement approach is not properly understood. Standards vary too widely from small sites to large

projects. It is too easy to blame the Project Manager. Clients and directors who have budget and management control should be the first point of call for enforcement officers. TREVOR HUTCHINSON DAMAN APPOINTS AL HABTOOR FOR ‘THE BUILDINGS’ Well done Al Habtoor! I worked for Al Habtoor as a senior project manager on the Dubai Pearl. This new project means I still have a job. Let’s hope that the company will not continue to reduce our pay. KS WONG WORKER SAFETY STARTS AT GROUND LEVEL It’s true that workers have to take responsibility for their own safety. But I can’t help but notice that site notices tend only to be in English and Arabic, which many construction workers (perhaps a majority) don’t speak. It is rare to see signs in Hindi, Urdu or South Indian languages. This is a flaw that needs to be addressed. BOB D NEW BAHRAIN LABOUR LAW TO GIVE WORKERS MORE RIGHTS How does this fit in with the policy of Bahrainisation? All too often expats are removed from positions (particularly white collar, management positions) in order to promote a Bahraini employee or meet the increasing limits of locals verses expats employed in a company. Some jobs are also exclusively limited to Bahrainis only by the Ministry of Labour. LAITH AL-HINDAWI

WRITE TO THE EDITOR Please address your letters to: Post, Construction Week, PO Box 500024, Dubai, UAE or email editor@ConstructionWeekOnline.com. Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWEEKonline.com and air your views on any one of a number of the latest Middle East business articles. The opinions expressed in this section are of particular individuals and are in no way a reﬂection of the publisher’s views.

CONSTRUCTION WEEK MAY 22–28, 2010

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FOREWORD ECONOMY OF SCALE

“SAUDI BINLADIN GROUP AND THE EVER SO SLIGHTLY LESS MASSIVE SAUDI OGER BOTH DOMINATE THE SAUDI CONSTRUCTION INDUSTRY, WHILE A DOZEN OR SO BILLION DOLLAR TITANS VIE FOR ANYTHING THE BIG TWO DON’T WIN.”

APOLOGY: IN ISSUE 321’S HIGH FLIERS WE NEGLECTED TO MENTION THAT PASCALL + WATSON ARCHITECTS WAS COMMISSIONED DIRECTLY BY SCADIA TO GENERATE A CONCEPT DESIGN FOR THE ETIHAD TERMINAL AND PRODUCE DOCUMENTATION FOR TENDERING.

CONSTRUCTION WEEK MAY 22–28, 2010

The scale of works in the Kingdom of Saudi Arabia is just bigger. It starts with ambition. If you are going to diversify the world’s biggest oil economy you have to do it on a grand scale. Whether seen as a starting point, a symbol, or a catalyst, nothing has a grander scale than the ambition behind the development of Saudi Arabia’s economic cities. However, the reality of their coming to fruition is mixed. Since the plan was ﬁrst revealed in 2005, King Abdullah Economic City (KAEC) has made progress, but others among the ﬁrst six planned cities have stumbled. A desire to rely on private equity may be one reason, with potential investors playing a wait-and-see game on what would be very long-term projects. Some international developers have committed to the process, going in with the aim of attracting more regional and international investment, as well as providing the technical know-how. Notably Dubai’s Emaar Properties established its subsidiary, Emaar The Economic City to develop KAEC, while Malaysia’s MMC Corporation was brought in to work with the colossus of KSA construction, the Saudi Binladin Group. This brings us to another issue of scale; the size of the competition. International hesitation may be partly down to getting a look in when it comes to contracts. Saudi Binladin Group and the ever so slightly less massive Saudi Oger both dominate the Saudi construction industry, while a dozen or so billion dollar titans vie for anything the big two don’t win. It’s a situation often bemoaned by the smaller players and one that has deterred some contractors from attempting to enter the market. Perhaps the answer lies in partnership rather than competition. Like the old saying goes, if you can’t beat them, join them.

STUART MATTHEWS SENIOR GROUP EDITOR stuart.matthews@itp.com

FRONT QUESTION MARK HANGS OVER TDIC BOND ACTIVITY By Ben Roberts that includes hotels, villas, golf clubs and housing, along with significant development to Saadiyat island. At a media briefing last month, Lee Tabler, CEO of TDIC, said the developer will not need to return to the international bond market this year after raising five-year US $1 billion and then $1 billion through a Sukuk – an Islamic bond. “I don’t believe we need to raise further bond financing for the rest of 2010,” he said. TDIC’s finance spokesperson denied that the company was looking to sell more bonds and was instead updating its prospectus.

KARIM SAHIB-AFP-GETTY IMAGES

Suggestions of further activity in the bond market this year by the Abu Dhabi government’s Tourism Development & Investment Company (TDIC) have recently increased following unidentified comments to a newswire that the firm was preparing a sale in the next three months. Two sources confirmed to Bloomberg, the news and data wire, that Standard Chartered, BNP Paribas, and Citigroup were among the institutions organizing the sale – expected to be for 10-year bonds – due to be completed between now and August. TDIC is in the early stages of a multibillion dirham regeneration of Abu Dhabi

CONSTRUCTION WORK ON SAADIYAT ISLAND: TDIC RAISED $2 BILLION IN STANDARD AND ISLAMIC BONDS.

PAIN AND NO GAIN FOR SAUDI CEMENT AND CONSTRUCTION STOCKS By Ben Roberts Indices for cement and construction companies on the Tadawul Stock Exchange made no overall gains in three months up to last week. The cement index closed last Sunday at 4,038, exactly the same level on 17th February having reached a high of 4,374 on 7th March. The construction sector index closed at 3,725 on Sunday, returning it to the 3,724 on 17th February after a high of 4,135 on 14th April. The lack of overall gains shows the challenge among companies to turn over a profit in today’s environment, despite the strength of the KSA relative to neighbours, a ban on exports for cement and a tariff on steel imports last year, and multi-million riyals of investment. Among construction firms in KSA, Makkah Construction & Development Company mirrored the shape of its index, closing at SR29.6 on 17th May to come within a whisker of the SR29.7 closing price on 20th February. Among the cement firms on the index, Arabian Cement Company fell more than four riyals over the period, and Yanbu Cement Company fell from SR49.8 in February to 42.9 last Sunday.

DANUBE BOSS: SAUDI TO THRIVE BEFORE DUBAI RETURNS By Ben Roberts Saudi Arabia is to outstrip the UAE in the next few years, though Dubai will eventually bounce back to be globally unbeatable for growth, believes the chairman of Danube Building Materials. In an exclusive interview with ConstructionWeek, Rizwan Sajan, head of the diverse materials and tools supplier, said the kind of growth seen by the company itself would be reflected in the Kingdom before a return to the boom days of three years ago for Dubai. 10

CONSTRUCTION WEEK MAY 22–28, 2010

“With Saudi – which the company has just ventured into – I have a strong feeling that it will go faster than the UAE. However, Dubai is a brand, and that gives it strength. I am very optimistic that in a year or so it will be much further ahead of its current position to be one of the best places in the world.” Danube Building Materials is currently riding high after posting turnover of AED 1 billion in 2009. Last year also saw it break into the retail market with the launch of

nine stores, called Danube Buildmart, selling its materials and tools direct to trade consumers. The company is also looking to go public in the next five years. Sajan says the company is considering both the Saudi and Dubai indices, and did not rule out a dual-listing. He added that a tentative market capitalisation for the company has a target of US $1 billion, though he said this is still early days.

KARIM SAHIB-AFP-GETTY IMAGES

CONSTRUCTION WORK ON SAADIYAT ISLAND: TDIC RAISED $2 BILLION IN STANDARD AND ISLAMIC BONDS.

CONSTRUCTION WEEK MAY 22–28, 2010

FRONT HIGHLIGHTS Projects

BAHRAIN TO BUY SAMA DUBAI PROJECT, SAYS BEDB CHIEF Bahraini investors are in talks with Sama Dubai LCC over a possible purchase of its stalled luxury seashore Salam Resort Bahrain project, according to the head of the Bahrain Economic Development Board. Mohammed Bin Essa al-Khalifa, chief executive of the BEDB, told reporters last week in Manama that the AED2 billion project, which stopped construction in January, might be snapped up by investors. It is the latest retreat from a project for Sama Dubai LLC, which merged with two units of Dubai Holdings - Dubai Properties Group and Tatweer – last August. Sama Dubai stopped the AED11.01 billion Amwaj development in Morocco on 6th April, according to the country’s government, and work was suspended on the AED6.244 billion Salam development in Oman, according to the tourism ministry.

Al-Khalifa said a number of real estate ventures from UAE companies in Bahrain had run into ﬁnancial difﬁculty. Buildings

MASSIVE FIRE AT NATIONAL PAINTS HQ IN SHARJAH A fire broke out at the National Paints headquarters in Sharjah last week - the second time in two months that the business park has been ablaze. The premises were evacuated and firefighters battled to contain the blaze. The cause of the fire and the extent of the damage are yet to be assessed. However, a local fire service confirmed that the blaze was substantial. Flames leapt from the roof of the building, and a large black cloud billowed from the site. Staff in the Sharjah head office could not be reached. However, a spokesperson for the Dubai showroom said they have not been able to contact anyone in the Sharjah head office to assess the damage, adding that it would have an immediate effect on the

47%

GCC SPEND ON NEW HOTELS TO HIT AED4.29BN IN 2010 Countries in the Gulf Cooperation Council will spend more than AED4.29 billion (US $1.17 billion) on hotel projects this year, defying the lingering pressures on the tourism sector globally, according to study ﬁgures. Proleads, a Dubai-based research company, has predicted that the United Arab Emirates will see the largest spending levels at around AED1.7 billion, closely followed by Oman which, surprisingly, is to overtake Saudi Arabia with an expected AED988.7 million against AED901.7 million. The report was produced and announced ahead of last week’s The Hotel Show, one of the Middle East’s leading

Projects

DUBAI PROPERTY PRICES NEAR TO FLOOR, SAYS BOAML Property prices in central Dubai may be reaching a ‘ﬂoor’ after values dropped by 45%, according to Bank of America Merrill Lynch. “We see an emerging ﬂoor for prime assets, particularly in the retail sector, which has the smallest supply pipeline,” wrote two Dubaibased analysts in a note to investors, reported by Bloomberg. The bank gave Emaar Properties PJSC a “neutral rating” and a year share price target of AED4.4.

u unofﬁcial percentage of unemployment rate in Yemen

2.8 billion the number of Kuwaiti Dinars that the government is to invest in non-oil sectors

Finance

dedicated trade event for the hospitality and leisure sector that was held at the Dubai World Trade Centre. Elsewhere, Business Monitor International estimated that retail spending in the MENA region would rise from AED393.9 million in 2009 to AED552.7 million in 2014 (ﬁgures originally in US dollars). Such a trend may spur the construction of further shopping malls.

80%

NEWS IN NUMBERS

the GCC economyy attributable to Saudi di Arabia (Source: SIAL Group)

promotion of products. Two warehouses were destroyed on 10th March on the Industrial Area 13, opposite the National Paints building.

CONSTRUCTION WEEK MAY 22–28, 2010

245

the number of tonnes that the Dubai Mall Aquarium’s acrylic window weighs

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FRONT

NEWS IN PICS 1. Progress on the Mecca Royal Clock Tower in

4. Housing construction continues at a pace in China with the news that authorities have

ofﬁcial launch date next month. The complex

tightened restrictions on the sale of new

will overlook the Grand Mosque that Muslims

property developments to existing home own-

face for daily prayers, will feature the world’s

ers in the country. The restrictions curb loans

second-tallest building, topped by a clock six times bigger than London’s Big Ben. Mohammed al-Arkubi, general manager and vice president of the new Fairmont Makkah Royal Clock Tower said the hotel would be 817m high – second only to the 828m tall Burj Khalifa in Dubai.

ALI AL-SAADI /AFP/GETTY IMAGES

Saudi Arabia continues ahead of the project’s

for third home purchases and have raised the minimum required deposit for second homes in a bid to help ﬁrst time buyers in to their own homes. 5. Qatar’s deputy premier and energy minister Abdullah bin Hama al-Attiyah (right) talks to SAEED KHAN /AFP/GETTY IMAGES

delegates at the Opec-50: Doha Energy Forum 2. Workers without full safety gear begin

foundation works on a small bridge in central Baghdad that will help ease trafﬁc congestion in the Iraqi capital. While the country may be sifting through a snakepit of legal issues following the general election, construction in the city continues unabated as investment trickles back in to the city. The General Secretariat approved the referral of the Al Raheed residential complex last week to an unnamed UAE company at a cost of more than US $20 4

billion (AED 73.4 billion) – heralding one of

3. Construction in Malaysia is riding high after the country’s economy leapt 10.1% during the ﬁrst quarter of 2010. This is it’s highest economic jump in over a decade and comes on the back of news that the country has implemented new economic reforms to gain developed-nation status by 2020.

CONSTRUCTION WEEK MAY 22–28, 2010

LIU JIN/AFP/GETTY IMAGES

the largest investment projects in its history.

in the Qatari capital this week. The emirate is hosting the forum to mark the 50th anniversary of the formation of the Organisation of Petroleum Exporting Countries (OPEC), which currently has 12 member states. 5

Metropolis of Mobility

Make the most of 2010!

May 25 â&#x20AC;&#x201C; 27, 2010

Dubai International Convention and Exhibition Centre, Dubai, United Arab Emirates

EVENTS

BUILDING SUSTAINABILITY 1 JUNE, 2010 RADISSON BLU, RIYADH

t has been an eventful year in the construction industry across the Middle East. One beacon of hope for many contractors and suppliers is the Kingdom of Saudi Arabia. Saudi Arabia’s electricity sector alone is seeing over $100 billion worth of investment. The housing sector has been injected with around US$6 billion; $5 billion is being spent on hospitals and roads; and $2 billion is going towards schools and universities. Further billions are being funneled into commerce and tourism development projects, and into expansion of the country’s high-performing industrial sector. Current hotel and ofﬁce building projects in Riyadh alone are valued at over $1 billion. With an array of lucrative investment opportunities for construction ﬁrms from across the world, Saudi Arabia is drawing international investor attention. Against this billion dollar backdrop, sustainable building is an issue developing strong foundations. Construction Week’s Building Sustainably conference, being held in Riyadh in June, will look at the continuing evolution 16

CONSTRUCTION WEEK MAY 22–28, 2010

of green trends and initiatives, and the role they will play in the country’s construction sector over the coming years. The conference will also look to cover best practices in project operations and provide a legal overview for being active in the Saudi market. The event will also provide an opportunity to share experiences and ideas on how environmental building practices can be encouraged and implemented.

PROGRAMME HIGHLIGHTS John Harris, national director of Jones Lang LaSalle in Saudi Arabia will present an analysis assessing the state of the real estate and construction sectors in the Kingdom. His presentation will uncover the state of the commercial, retail and residential construction sectors, and help you understand what the future holds. It will look at how commercial real estate in Saudi Arabia has been impacted by the global economic downturn; what the demand is in the retail sector for new malls and shopping centres; and how the nation will meet demand for high-rise residential developments.

Attendees will also learn about progress at the US $10 billion (SR 37.5 billion) King Abdullah Financial District (KAFD), currently under construction alongside King Fahd Highway in central Riyadh. Speakers from the leading architects and consultants on the project will share their extensive expertise of the design and construction of high-rise buildings and complex MEP installations. The conference will feature a mix of speaker presentations and interactive discussions with the audience. 

BUILDING SUSTAINABILITY For details of how to attend, visit www.constructionweekonline.com/ conferences

$ISINVESTED !SSETS $UBAL !LUMINIUM HAS RECENTLY DISINVESTED A NUMBER OF ITS ASSETS FROM COMPLETED PROJECTS AND IS LOOKING FOR EXPRESSIONS OF INTEREST IN THE FOLLOWING )TEMS %LECTRICAL #ABLE K6 CABLE VARIOUS CUT LENGTHS 2ECTIFIER TRANSFORMERS #OMPRESSORS -AKE )NGERSOLL 2AND K6 OUTPUT SUPPLY V OPERATING PRESSURE "AR %/4 #RANES $EMAG MT X MT 6AUGHAN MT AND #ARRUTHER X MT 3CRAP -ETAL INCLUDING 3UPER STRUCTURES APPROX X -4 AND X -4 AND 0OTSHELLS X -4 6ARIOUS LENGTHS OF RAW STEEL AND PIPING 3HOULD YOU BE INTERESTED OR HAVE ANY QUESTIONS QUERIES 0LEASE CONTACT 'AVIN 7HINDUS %MAIL 'AVIN WHINDUS SNCLAVALIN COM 4EL -OBILE

COMMENT > For more legal advice log on to www.ConstructionWEEKonline.com/comment

Engineering sustainability SAEED ALABBAR LOOKS AT HOW CONCURRENT ENGINEERING CAN BE USED TO CREATE COST-EFFECTIVE SUSTAINABLE DESIGN

Climate change and the sustainability agenda have grown in international importance and recognition. As the building sector is responsible for higher levels of CO2 emissions than any other, it forms an integral part of the global sustainability agenda. Consequently there has been a mounting requirement for buildings and developments to be designed and constructed in a more sustainable manner.

“ONE OF THE CHALLENGES FACING DESIGN TEAMS TODAY IS TO ENSURE THAT DESIGNS COMPLY WITH THE LATEST SUSTAINABILITY REGULATIONS.”

Saeed Alabbar is a sustainability consultant at Halcrow and is currently involved in the sustainable design of various master planned developments and large infrastructure projects. He holds a first class masters degree in mechanical engineering from the University of Bath and is a LEED Accredited Professional. The opinions expressed in this column are of the author and not of the publisher.

CONSTRUCTION WEEK MAY 22–28, 2010

GROWTH OF THE MARKET Key drivers sparking the emergence of sustainable development include growing government regulation, coupled with increasing consumer demand for more sustainable buildings. The market for sustainable buildings is growing rapidly and forecasters predict this trend to continue. However, in the current climate of limited liquidity, developers are naturally vigilant of the perceived capital cost premium associated with green buildings, despite the life cycle beneﬁts. This is currently a major deterrent to developers adopting sustainable design and construction practices. Any news of government legislation mandating increased levels of sustainability is frequently met with a degree of resistance and panic. This need not be the case. Approaching sustainability in the right way, at an early stage of a project, can provide the potential for developments to achieve a high level of sustainability at little or no capital cost premium. One of the challenges facing design teams today is to ensure that designs comply with the latest sustainability regulations, while also aligning with what the end-user needs and values. This approach ensures that any sustainability features incorporated into the development are not simply expensive bolt-ons for compliance, but provide real value to the project. MEETING THE CHALLENGE In dealing with the current challenge of cost effectively incorporating sustainability into construction projects, I look back to

the end of the 1990s and aeronautical engineering; a time of growing demand for increasingly low-cost air travel in an era of rising and largely unstable fuel prices. The emergence of the budget air travel market offered an enormous opportunity to aircraft and component manufacturers, despite the ﬁnancial challenges. Consequently, during this time, an engineering design management philosophy known as concurrent engineering emerged at the forefront of the industry, as a means of reducing lifecycle costs and shortening design and manufacturing programmes. There are many principles to concurrent engineering, but in essence it is a systematic method of considering and optimising all aspects of a products lifecycle – from conception to disposal – by carrying out project tasks concurrently, instead of sequentially. DELIVER WHAT THE USER NEEDS In order to maximise the probability of market success, the aerospace industry uses systematic tools that transfer customer requirements directly into designs. A clear understanding of what the customer wants is determined right from the outset and quality management tools are used to translate these requirements into the product. This is in contrast to construction projects, where the end-user is frequently far removed from the design and construction process. Such an approach to delivering what the customer wants could ensure that the project focuses on the sustainability issues most valued by the project’s key stakeholders. Establishing exactly which sustainability issues are considered valuable to the project can be complicated. To manage the complexity of implementing sustainability on the large multidisciplinary projects that Halcrow works on, we have collaborated with the University of Bristol to develop a tool that systematically identiﬁes and manages the sustainability issues that are most important to the key stakeholders. The tool, HalSTAR (Halcrow Sustainability Toolkit and Rating

WORLD PIONEERS IN STEEL BUILDING INDUSTRY Low-Rise buildings for all applications: industrial, commercial, and institutional … ranging from warehousing to multi storey shopping complexes and aircraft hangers. CONCURRENT ENGINEERING CAN BUILD SUSTAINABILITY INTO A DESIGN.

System), provides us with a means of focussing the project on the key sustainability issues so they are integrated into the project, rather than bolted on. A CONCURRENT APPROACH TO DESIGN One of the main areas where concurrent engineering was able to achieve significant benefits in the aerospace industry was in the integration of the product and manufacturing design processes. Integrating the architectural, engineering and construction design processes can have similar benefits. There has been a significant drive in the construction industry to adopt concurrent engineering. The results of these initiatives can be seen in the industry today in the form of ‘partnering arrangements’, design and build contracts, value engineering and other less formal means of promoting integration in the procurement of construction projects. An integrated approach to construction projects can also yield benefits in terms of achieving cost-effective sustainability. Embedding sustainability goals across the entire project team at the very start of the project can promote inter-disciplinary collaboration and cooperation, optimising designs in an iterative manner with respect to the project’s sustainability objectives. Similarly, the involvement of contractors, material suppliers and other downstream disciplines, in the design phase ensures that proposed sustainability features are feasible to construct. Due to the multidisciplinary nature of sustainable design, it is now accepted that an integrated approach is the most effective means of achieving sustainability. HalSTAR allows us to embed a project’s sustainability objectives across project teams right at the start of projects, providing the means to promote an integrated, collaborative approach to design from the outset. The tool provides a systematic process to enable designs to progress towards the most effective sustainability solutions, without impacting design programmes, by utilising its database of global precedents and best practice. Using HalSTAR we are able to align planning and building code requirements as well as rating systems, such as LEED or Estidama, against the framework so that risks associated with code or credit rating compliance can be managed effectively, delivering optimum sustainability results on our projects.

engineering resources, manufacturing capabilities, along with the international experience of our certiﬁed builder and sales network, to provide a total solution for your building needs. We'll apply our vast

w w w. z a m i l s t e e l . c o m

LEGAL > For more legal advice log on to www.ConstructionWEEKonline.com/comment

What’s the worst that could happen? COLM O’SUILLEABHAIN ON PROJECT RISKS AND THE INSURANCES THAT CAN BE PUT IN PLACE TO EASE THEM

“BEFORE COMMENCING A PROJECT, AN EMPLOYER SHOULD ENSURE THAT ADEQUATE INSURANCE PROVISIONS ARE IN PLACE AGAINST POSSIBLE LOSS OR DAMAGE TO THE CONTRACT WORKS.”

Colm O’Suilleabhain is a Senior Consultant with Trett Consulting in their Abu Dhabi office. He is a Chartered Quantity Surveyor with extensive experience in a variety of fields. As well as having a Masters in Project Management, he is currently completing the second year of a three-year legal Masters (LLM). Colm is also a Member of the Chartered Institute of Arbitrators. The opinions expressed in this column are of the author and not of the publisher.

CONSTRUCTION WEEK MAY 22–28, 2010

All construction projects carry with them inherent risk. Every standard form of contract requires certain types of insurance to be put in place. What most employers and contractors don’t consider are the other risks that exist, which may or may not be provided for within the contract, but which could be mitigated by putting additional insurance in place. For instance, there is always the risk that a contractor or sub-contractor may not perform their duties correctly or declare bankruptcy before completion. To address this risk, adequate retention should be held on all amounts paid under the contract. Alternatively (or in addition) payment and/or performance bonds could be requested. All standard forms of contract require that the contract works are insured. This can be the responsibility of either the contractor or the employer. Before commencing a project an employer should ensure that adequate insurance provisions are in place against possible loss or damage to the contract works. This can be achieved through project speciﬁc insurance or through the contractor’s ‘all risks’ policy. On every project there is a risk to third parties. Insurance can be put in place by the employer or the contractor to provide for these risks. The types of insurance that may be considered are third party insurance against loss or damage, public liability insurance, insurance against damage arising from the works to existing and surrounding buildings (if not covered under project insurance) and non-negligence insurance. There is a risk that the designer, or other consultants involved with the project, may be professionally negligent. Before engaging any architects, engineers or consultants, the employer should ensure that they have the required experience as well as the adequate professional indemnity insurance for the activities that are being undertaken.

Plant and materials supplied by the contractor may be defective. An employer should put collateral warranties in place to ensure that they have a direct contractual link with suppliers, particularly the suppliers of the high value and maintenance items. There is a risk that the building will contain latent defects not evident prior to completion. A client and employer can put latent defects insurance in place against such an eventuality. A client and employer may incur consequential loss as a result of the late delivery of the project. They can insure against this risk by taking out consequential loss cover, advance loss of proﬁt insurance, delay in start-up insurance or loss of liquidated damages insurance. All insurance policies should be maintained on ‘jointly named’ basis where possible with clearly defined contract provisions allocating responsibility for providing the insurance. The benefit of maintaining policies on a jointly named basis is that the full risk can be transferred to the insurance company while at the same time ensuring that the insurance company cannot use subrogation against either the employer themselves or any of the project works contractors or sub-contractors. While it would be ideal to have all of the aforementioned policies in place on a project this may not be practical from a commercial point of view as each insurance policy will come at a cost which will either be acceptable or unacceptable to the employer/contractor. Insurance actuaries no doubt have complicated formulas and equations to work out. I on the other hand have a more simple equation; divide the cost of putting the insurance in place by how foolish you would feel if the insured event actually happened and you lost out as a result. This will tell you if you should have put the policy in place or not.

ANALYSIS

ASTERN IDDLE E R THE M T A H ETHE INDS T S TO WH K B E RT S F B E N R O R E D I V I D E D A O RT H T H E R I S A W S S M I R L I F APITA I R AQ I C

general election, which at ﬁ rst, was too close to call, marred by a series of bomb attacks and recently disputed by the current leader of the country, will have only increased the ubiquitous nerves surrounding Iraq and its capital. As the Justice and Accountability Commission continues to root out former members of Saddam Hussein’s Baath Party, who might have won seats as current candidates, fears mount in Baghdad of prolonged instability. Developers in the Middle East who may have taken a cursory glance at some of the many infrastructure and residentialrelated opportunities that will reinvent the city will be keeping their cards close to their chest. 22

CONSTRUCTION WEEK MAY 22–28, 2010

Project plans are still coming – including a planned one million new houses - though the issue of security remains the bottom line for both contractors and suppliers. Mr Govia of Emirates Buildmat is one example of those giving the city a wide berth. “The situation in Baghdad is tense, and we’re waiting for it to be resolved,” he said. “Law and order and safety are very important – [to know that] when you go over there your investment is protected. People are hoping for security.” Mr Govia said he believed that the majority of the one million homes would be built in

“WE HAVE SEEN MORE ORDERS FROM THE COUNTRY IN THE LAST YEAR, YEARAND-A-HALF, BUT WE WOULD NOT SEND MEN THERE.” Dinesh Nainani

Kurdistan, in the north of the country. Dinesh Nainani is another who believes that the risks – and the costs associated with security and potential losses – are just too high. As the general manager of Shaker Trading, a mid-sized supplier of steel products such as pipes, sheets and tubes, he said: “We have seen more orders from the country in the last year, year-and-a-half, but we would not send men there.” This view is not the consensus, however, and some companies are reviewing the risk-reward factor and coming down on the side of the former. Khaled Saqqaf, head of the six-year-old Iraq office for law fi rm Al-Tamimi, said the fi rm has seen more companies looking to enter Baghdad in the last two years requiring the fi rm’s advisory service. “I think there are lots of opportunities. The important thing to know about construction in the country is the business

AHMAD AL-RUBAYE/AFP/GETTY IMAGES

AN IRAQI LABOURER WORKS AT A CONSTRUCTION SITE IN CENTRAL BAGHDAD: REGIONAL FIRMS ARE DIVIDED ON THE RISK OF SENDING STAFF TO THE COUNTRY.

classifications; that is, what type of work you are allowed to carry out. So the first class would be that a company can operate on any project, the second class only on a few projects, and so on.” He adds that if a foreign company has the project already signed before they enter the country, it is a far more streamlined process. “Companies are asking us about security issues and taxation among other things.” Tom Barker, director of G4S Secure Solutions Iraq, part of the international security group G4S, also says that there has been a significant upturn in incoming businesses. “In terms of threat, the country is a lot more peaceful since the height of the sectarian confl ict,” he says. “Now there are opportunities realised by all parties and there is a fairly optimistic outlook as the election passed off reasonably peacefully. Voter turn-out was high, but we’ll have to see how it turns out – whether the people unhappy with the result will resort to violence or whether they will accept it.” The company provides ‘Gateway Iraq’, a full suite of services for fi rms new to the country that includes secure villas for setting up meetings and headquarters

as well as transport. In the past it has worked largely with the Iraqi government for major projects such as the security at the Baghdad International Airport and a number of power stations, along with big international companies that include exponents of the ﬁ nancial and telecommunications sectors. WATHIQ KHUZAIE / GETTY IMAGES

IRAQ MAY PROVE TO BE A LAND OF OPPORTUNITY.

“Iraq needs a lot of support, though there are a lot of companies coming in that have the stomach for the risk and we help them from an intelligence point of view.” FIAFI Group, an Iraqi infrastructure service firm, tells CW a similar story. Ragdan El-Akabi, the company’s CEO, said: “The global economic downturn has prompted companies to seek opportunities in new markets that were once not ever considered, including Iraq, due to the instability.” He believes the security concerns must be tempered with a wider perspective. “Security does remain a concern for everyone, but you have to mitigate the risks where possible. There are many dangerous places in the world where opportunistic companies brave those risks and come out on top. You simply have to do your homework, conduct a risk assessment and implement a robust security policy that reduces those risks where possible to acceptable levels. Business is never without risk wherever in the world it may be. “The situation in Iraq has improved dramatically of late and with the elections now complete there is hope that it will improve further, providing greater stability and an environment that attracts more investment and business opportunities.”  MAY 22–28, 2010 CONSTRUCTION WEEK

ANALYSIS

HEALTH CHEQUE ELIZABETH BROOMHALL ASKS WHAT NEW HEALTH AND SAFETY REGULATIONS WILL COST THE CONSTRUCTION INDUSTRY IN ABU DHABI

s one of the biggest concerns for today’s construction industry, the matter of health and safety is attracting more attention than ever before. Recent research by UAE University indicated that approximately two-thirds of occupational injury admissions to a Middle Eastern hospital in 2008 involved accidents common to construction workers. Falls from height particularly, have been identiﬁed by experts as the primary cause of death in the construction workplace. Taking the lead on the subject in early May, the emirate of Abu Dhabi established a new building and construction sector environment, health and safety (EHS) department in its Al Ain municipality. Having incorporated international principles with existing federal laws to set minimum standards for EHS, government ofﬁcials are now looking forward to a more standardised system of working, whereby small contractors as 24

CONSTRUCTION WEEK MAY 22–28, 2010

well as large firms can reap the benefits of healthy, safe and sustainable workplaces. By compelling 190 high-risk firms across the sector to devise and implement their own EHS management systems before 2012, they hope to breed a new ‘health and safety culture’ throughout the emirate, and in the future, across the whole of the UAE. But like all new pervasive and regulatory frameworks affecting entire industries, concerns exist over how the scheme will work in practice, as well as the day to day impact on contractors. This is in addition to apprehension over how the scheme might affect business in the region and how smaller firms might go about implementing it.

“ANY GOOD INTERNATIONAL CONTRACTOR WILL ALREADY BE COMPLIANT WITH THE NEW REGULATIONS, SO IT IS NOT REALLY GOING TO MAKE A DIFFERENCE TO THEIR BUSINESS.”

‘NOMINATED ENTITIES’ To begin with, the scheme is only going to affect what are currently being referred to as ‘nominated entities’. Essentially, these are high risk companies (including contractors, sub-contractors, developers, consultants and suppliers) with projects in Abu Dhabi who have been nominated by the municipality. In effect, this means that any large company in the GCC region should already be working towards a formal health and safety policy, and indeed, many have already begun preparations without notification. Formally, once notified, nominated entities will have a year in which to devise their own EHS management system specific to their individual companies’ risks, and then a further year to implement the system internally and across their network of subcontractors and suppliers. The general consensus is that there will be no significant impact on large companies, most of which already have solid health and safety management systems in place. “Any good international contractor will already

“IMPLEMENTING THIS SCHEME WILL BE A CHALLENGE, BUT IT IS SOMETHING THAT HAS TO BE ACHIEVED. RIGHT NOW THERE ARE TOO MANY EXCUSES FOR NOT IMPROVING HEALTH AND SAFETY REGULATIONS.” be compliant with the new regulations, so it is not really going to make a difference to their business,” Aldar’s Head of Safety Andrew Broderick explained. “At Aldar for example, we already have an EHS management system in place which we have implemented across all of our active sites. And, Aldar being Aldar, we tend to employ good contractors who are also already compliant with ISO standards.” Niall McLoughlin, Senior Vice President for real estate developer Damac Properties said that his company is also already practising an HSE Management system in line with Dubai and Abu Dhabi authority requirements for its major projects. He added that to ensure the system is implemented by contractors and engineers, Damac actu-

ally includes a clause on health and safety compliance within its contract, and regularly monitors the system’s implementation along with government agencies.

ECONOMIC IMPACT Of course, where such systems are not already in place, concerns have been raised about the economic impact the scheme could have on the region, both in terms of the direct cost implications for those firms who have a lot of work to do on the subject, and the effects that a new regulatory environment could have on the winning of new contracts. For smaller firms, the price of implementing a formal EHS management system particularly could be significant, from the direct costs of purchasing safety equipment and employing an EHS official, to the time and resource associated with implementing the system itself. However, Elias McGrath at BuildSafe does not believe this is a valid reason for avoiding health and safety on construction sites. “Implementing this scheme will be a challenge, but it is something that has to be achieved. Right now there are too many excuses for not improving regulations.” And

THE EHS LAUNCH SEMINAR IN AL AIN, ABU DHABI.

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rather than having a negative impact on business, McGrath believes that the new scheme offers real opportunities for economic growth and prosperity. “This scheme is a fantastic tool for the industry and the next generation of construction. It will actually be used to increase competition, because organisations who comply will win more work. The reality is that a quality company protects its workers, and if an organisation wants to achieve competitive advantage, then it needs to have proper health and safety systems in place.” Related to this issue is the cost of the accidents and fatalities themselves. Aside from the obvious loss of life or health, firms who witness incidents on site are at a high risk of paying out a substantial amount of money in compensation and legal fees. “The construction process contains many risks – and the consequences of accidents can be quite devastating,” said McLoughlin. “The costs are often way beyond any financial implications of implementing health and safety policies, while adopting best practice need not be a cost-prohibitive exercise. It is more about sharing ideas and standards.” In accordance with McLoughlin’s views, Broderick confirmed that finance is a popular motive behind the majority of health and safety systems internationally. “Everyone knows that if you have a good, safe site it can THE GOVERNMENT AIM GOES BEYOND ENFORCEMENT.

CONSTRUCTION WEEK MAY 22–28, 2010

“THE COSTS ARE OFTEN WAY BEYOND ANY FINANCIAL IMPLICATIONS OF IMPLEMENTING HEALTH AND SAFETY POLICIES, WHILE ADOPTING BEST PRACTICE NEED NOT BE A COSTPROHIBITIVE EXERCISE.” save you a lot of money,” he said. “Ultimately the three key international drivers when it comes to health and safety are moral, legal and ﬁnancial factors.” Unfortunately and in truth, there are still a large number of contractors across the region without adequate health and safety systems. Not only is this apparent from a frequent number of accidents and fatalities in the industry, but also due to the need for a more standardised health and safety system in the ﬁrst place.

A LACK OF UNDERSTANDING Ultimately then, the main concern with the new regulations is the anticipated impact on smaller ﬁrms, since it is they who tend to be among the non-compliers. According to Broderick, the reason for this is simple, and boils down to a lack of understanding among the smaller contractors, who in the past have been somewhat unfamiliar with health and

safety, both of in terms of the dangers of poor policies and the benefits of safe construction sites. “The whole point of this scheme is to bring the smaller companies up to speed, as there are still a lot of contractors out there who are breaking the law,” said Broderick. “More often than not it is because they simply don’t understand the benefits of having a proper system in place. A safer site is a more productive site, where workers often do the work more quickly. But you can’t keep barking orders at contractors, you need to explain to them and show them.” Evidently as part of the new system, government officials are taking the soft approach of trying to encourage and assist smaller firms to improve standards rather than bullying them into it. As well as assuring companies that they will not be penalised for non-compliance within the first two years, they have reiterated the existence of a new incentive scheme, issuing rewards for top performers. General Manager of Al Ain Municipality Dr Matar Al Nuaimi said: “Our aim goes beyond enforcement. By educating the sector, we hope to influence behaviours and develop a positive EHS culture that values both human life and the environment.” 

SPECIAL REPORT

BUILDING AT HEIGHT, SAFELY LEGISLATION AND THE CHALLENGES OF MAINTAINING A HEALTH AND SAFETY CULTURE WERE KEY THEMES OF CW ’S CONFERENCE ON THE SAFETY CHALLENGES OF BUILDING AT HEIGHT

egislation and the challenges of maintaining a health and safety culture were key themes of the Construction Week Building at Height Safely conference held in Dubai last week. Hundreds of health and safety delegates attended the conference, and panel discussions during the afternoon sessions were particularly lively as industry experts were grilled by Wayne Harris, HSE director with Qatar Project Management. Harris interrogated panel members on the issue of international safety practices. Over the last ﬁve years safety practices from UK and other European countries have been adopted locally in the development of health and safety legislation. Harris asked whether the cultural and geographical differences are really being addressed when applying these guidelines across continents. “Instead, are we just creating a generic, common set of standards, and should we tackle the problem in a management perspective to health and safety, rather than just routine task based legislation?” Garry Crighton, vice president of Emirates Safety Group, said he did not think there was anything wrong with generic guidelines, but it was necessary that the business was involved and that it understood the cultures within its own company. “They need a goal-setting regime that goes beyond the prescriptive,” he said. Stephen Storey, senior health, safety and environment manager at Masdar, said health and safety had transformed over

WAYNE HARRIS CHAIRED A PANEL DISCUSSION ON PRACTICAL SAFETY MEASURES.

CONSTRUCTION WEEK MAY 22–28, 2010

BETTER MANAGEMENT WILL CUT FALL DEATHS AND INJURIES The number of falls from height, the industry’s biggest killer, could be reduced if companies implemented more effective ‘control measures’. By minimising the chances of injury or death, ‘control measures’ help ﬁrms to lower the number of hazards in the workplace and better manage on-site safety risks. According to the industry’s most experienced safety experts, the best control measure available was to reduce the number of falls is to avoid working at height altogether by better management of the project at the planning stage. This creates safety-management opportunities for designers and project managers, whose role at the beginning of a project can dictate whether a structure needs to be put together at height at all. Independent expert at Combisafe UAE Barney Green, said: “To remove the need to work at height we need to avoid the need to work to tight schedules, and to plan the work more effectively.” Second to avoiding working at height altogether, Green emphasised the need to establish more passive, collective safety systems over active, personal systems which, by deﬁnition, relied less on the worker’s individual actions and more on company policies. First and foremost, he advised collective, passive systems that prevent falls, using the example of an edge protection system verses a safety harness, which would prevent workers from falling even if they were incorrectly attached to their lanyard. In the event that working at height could not be avoided, and preventative systems still posed a degree of risk, Green proposed that companies minimise the possible consequences of falling from height, again, through more passive, collective systems. An example would be using a safety net over personal fall protective equipment, which in this case, does not depend on a worker having or wearing their equipment. It was still better, Green said, to reduce the need to work at height with thorough project planning.

the years he has been in the UAE, although the region today might be a little too fragmented in applying standards. Mark Warrington of project manager, Al Ain Municipality HSE, for Atkins (Middle East) concurred, adding: “We saw over the last few years that there were different regulations applied across free zones in Dubai and Abu Dhabi. However, if you look at what is coming out of Abu Dhabi there is a great opportunity to have speciﬁc regulations. “The decree goes further and a number of different industries. To answer the question as to whether it needs to be prescriptive or implemented from a management perspective, the answer is both. There have to be guidelines, and I think it has to be tailored to the region.” He added that there has to be a continued drive toward overcoming communication problems between employees, something that remains a ‘barrier in the region’, and self-regulation has a future. “One of the fundamental things we’re doing is empowering each entity that falls

MAY 22–28, 2010 CONSTRUCTION WEEK

under the decree to allow them to regulate themselves, giving them the ability to do what benefits them,” he said. Harris noted that what is driven by management is what is prescribed by company law. “The question coming from this is: if in place, will it be enforced?” “This could be a ‘soft focus’ initially, as at the moment it is more about getting entities to certain standards. Most certainly there will be teams – such as from Abu Dhabi Municipality – that ensure that systems are complied with.” Here he referred to Saeed Semaihi, head of HSE at the Abu Dhabi Motorsport Management, who represented a different kind of safety – event safety rather than a project – and said it is imperative to get right due to the profile of the sport. Semaihi, who worked with F1 teams to ensure the first ever Abu Dhabi Grand Prix ran withg out a hitch, said event safety is ALDAR’S ANDREW BRODERICK (LEFT) AND MARK WARRINGTON, ATKINS. slightly different as there is the significant issue of crowd safety. There was some push and pull with event organisers, he added, bonus of the CEO. This was also tied to people’s bonuses when who wanted to make sure that what is, in effect, a dangerous it filters down the management chain. “If you show the top man is committed to safety, it does flow down and it is an added sport is not subsumed into health and safety too much. “A lot of things happen during the race and we tried to do it ‘bonus’ to get people on your side,” he said. A representative from the Ministry in the way that makes sense,” he said. “MASDAR HAS ATTACHED KEY of Labour in the audience said that the “There is still a huge gap to cover all PERFORMANCE INDICATORS the legislation to cover sporting events. Ministry had started solidifying building FOR HEALTH AND SAFETY TO There was some resistance from teams HSE regulation for UAE, not just Dubai. THE BONUS OF THE CEO” to our health and safety plans, simply “It will be for building and construcbecause they thought it may get in the tion. That’s very good news for UAE, way of their sport. We just had to make it clear that while we but I’d like to ask: what is the situation in Qatar?” understood their sporting concerns, our business was to provide Doha-based Harris said Qatar compared to Dubai or Abu Dhabi a safe event for our visitors.” seven years ago, and that much of the progress in health and The panel was then encouraged to focus on safety culture in safety standards emanated from their most mature industries: construction. “Over the years there have been many different gas and petroleum. He said safety measures in the gas fields were very good, and that many people were coming safety schemes in companies,” said Harris. “A lot of companies will say ‘safety first’ and it’s become the out of gas and petroleum and into the construction most overused phrase. Companies also say that industry and bringing their experience with them. they are following best practice.” “Qatar has a long was to go but they have achieved quite a lot,” he said. “But in the economic crisis, is it difficult to put Another member of the audience asked if there in long term schemes that might be cut back in six months?” was an initiative to combine the many regulatory Andrew Broderick, HSE director at Aldar authorities in setting standards in construction. Properties, said motivating and encouraging A Ministry of Labour representative stated that there were only four key authorities staff towards a collectively safe workplace could be a challenge when there is a threat of TECOM, the Dubai Airport Free Zone Authority redundancy. “When you’re an expatriate, it , Dubai Municipality, and the Jebel Ali Free can be quite a challenging time,” he said. “If Zone - and that there is a drive to unify this you lose your job it’s not just a question regulation, but it required time. Harris of going home and searching for a closed by commenting: “It’s always new one – it means you have to quite interesting when legislation leave the country. You have got starts to change, moving from SAEED SEMAIHI SAID RUNNING A to keep pushing to encourage the procedures of free zones SAFE F1 RACE IN collectively, including higher to making them federal stanABU DHABI WAS HIS TOP PRIORITY. management.” dard. It’s not an easy process. Sometimes there is criticism Stephen Storey said MASDAR had been able to attach that it takes too long, these key performance indicators things take a lot of work for health and safety to the and negotiation. 30

CONSTRUCTION WEEK MAY 22–28, 2010

SPECIAL REPORT NEWS

DODSAL’S GARRY CRIGHTON SAID THAT IT COMPANY DIRECTORS NEEDED TO HEED HSE GUIDELINES.

CORPORATE MANSLAUGHTER CHARGES TO TAKE EFFECT IN THE UAE Directors of construction firms in the UAE will soon face corporate jail because that isn’t going to change the system, they will continue manslaughter charges should a fatality occur on their site, a safety with another hundred accidents. If you prosecute the worker who official has revealed. made a mistake because he hasn’t been trained properly, then you Speaking at CW’s Building at Heights summit, Dodsal’s HSE create a negative HSE culture. director and vice president of the Emirates Safety Group Garry “But the first time you prosecute a project manager,” he added, Crighton confirmed that “it wouldn’t be long” before the UAE started “you know that it won’t happen on his next project, because you holding company directors accountable for accidents. influence his company to say ‘don’t let this happen anymore’. The The new approach to health and safety, which has already been first time a director of a company goes to jail or even gets a fine, he established in the UK, is reportedly gaining popularity in the region as or she will say, ‘this can never happen again’.” authorities try to clamp down on poor health and safety practice. Whilst currently the law isn’t written in such a way as to hold Crighton said: “New laws in the UK focus on directors and executive management teams directly responsible for poor health and corporate manslaughter, and it won’t be long until the same thing safety practice, Crighton expects the situation to change quickly. He suggested that unlike the UK, which happens here.” “Some of my colleagues have already been was slow to realise the benefits of hold“IT’S IMPORTANT FOR approached by the authorities here to start ing top management more accountable, DIRECTORS TO TAKE AN sitting on panels to help them come up with authorities in the UAE were “raising their INTEREST IN THEIR OWN a new set of rules and standards.” sights fairly quickly”. POLICIES AND RETAIN ACCOUNTABILITY.” When asked how he thought executive Stressing the need to focus on management, he added that it was unfair to blame management teams could better live up to accidents on safety officers, who could not implement policies, only their responsibilities, he explained that it was important for directors devise them, and who had no control of health and safety budgets. to take an interest in their own policies, whilst reiterating the need Later in the day, he explained further how the case for targeting for safety leadership and for directors to retain accountability. “Directors need to take an interest in health and safety systems management was developing. “Previously, safety officers and site operators have been held and show commitment to them,” he said. responsible for accidents, but in the last two years there have been “They need to know their policy, their management system and incidences of project managers and project engineers going to jail its structure, they need to be more familiar with health and safety in the UAE. So we’re gradually moving up the pecking order. best practice and they need to be safety leaders. “The truth is that we need more focus on the management “But above all they need to retain accountability. There is a tensystem, as many of the accidents that occur are a result of system dency for directors and top management to delegate accountability failure. There is no point in putting a hundred crane operators in when it suits them. MAY 22–28, 2010 CONSTRUCTION WEEK

SPECIAL REPORT NEWS 80% OF HEALTH AND SAFETY PROCEDURES SHOULD BE ACTIVE Construction companies should be dedicating approximately 80% of their health and safety resources into the active monitoring of safety standards, according to the region’s top safety experts. Active monitoring, which involves measuring the company’s compliance with certain codes and standards, needs to take precedence over reactive monitoring and the assessment reports of incidents, if companies are to maintain a safe working environment. By focusing on more preventative measures, companies can reduce the number of accidents more effectively and increase the extent to which workers and managers feel part of the company’s safety culture. Addressing the audience at the Construction Week Building at Height conference earlier this week, officials suggested that active monitoring facilitates the improvement of health and safety and gives companies more control over accident numbers. How often, and what kind of active monitoring should be done, was also highlighted as important. Dodsal’s HSE director and vice president of the Emirates Safety Group Garry Crighton said it was reasonable to expect an executive manager to do a walk about every three months, a project manager to conduct weekly checks and for a safety officer to be monitoring hazards and risks several times daily. He added: “You’ve got different levels of monitoring, you’ve got walk abouts, you’ve got inspections, you’ve got audits and then you’ve got thorough examinations by third parties. There are thus various degrees of active and preventative measures and organisations need to be taking a multi-pronged approach.” Key Performance Indicators (KPIs) were also identified as efficient tools for reporting and monitoring health and safety, giving a benchmark against which they can measure safety activity, as well as opportunities to raise overall health and safety standards. 32

CONSTRUCTION WEEK MAY 22–28, 2010

SMALL COMPANIES NEED SAFE PRACTICE TOO While the safety message may be getting “We don’t build as we did 10 years ago, so through to many of the construction we can’t work the same way. We also work industry’s larger players, smaller companies closely with them to replicate ideas on a also need to look after their workers with smaller scale, just to spread the word and comprehensive training and monitoring says give something back.” Qatar Project Management HSE director Delegates agreed that adopting best practice principles were also key, and motivating staff Wayne Harris. Harris says that larger companies were to follow safety training was simply a matter aware of the impact any lost time injuries of motivating them to do so. One delegate said had on projects, that his workand that it was ers responded “IT’S NOT ALWAYS A CASE OF important to well to rewards WEILDING A BIG STICK: ABU ensure workers like phone cards, DHABI HAS TAKEN THE LEAD IN were kept safe on which were DEVELOPING A FRAMEWORK FOR the job, but the inexpensive but THE WHOLE OF THE UAE” message needed made a huge difto ﬁlter down to smaller companies too. ference for young foreign workers living “We’ve seen it in the UK where most fam- away from their families. ily owned, family contracting companies Harris said incentives were just one way couldn’t always afford to hire in an HSE of motivating the workforce, but that safety consultant to draw up a plan and train should be foremost on everyone’s minds. staff. That’s where big business has a role to play,” he said. “It’s not always a case of wielding a big stick: Abu Dhabi has taken the lead by developing a framework for the whole of the UAE, and initiatives like BuildSafe UAE are great for spreading the message – but big business can help too.” PERCENTAGE OF ACCIDENTS Harris said that bigger ﬁrms often brought ON SITE THAT OCCUR BECAUSE smaller company workers in to their projOF BEHAVIOUR ects to work for short periods to instill in them a safer working practice.

85%

SPECIAL REPORT NEWS

ACC’S GEOFF BOTTOMLEY SAYS WORKERS MUST TAKE A LEAD IN THEIR OWN SAFETY

WORKER SAFETY STARTS WITH BETTER WORK PRACTICES AND GUIDANCE Even with a stringent safety message and regular training, the hand was one of the main focuses of the training and ongoing key component in any safe working environment is the worker support – but it didn’t stop workers from reverting in to old habits himself, says Arabian Construction Company’s Health and Safety and forgetting to wear their safety gear. head Geoff Bottomley. “You can have the best safety training systems and policies in Bottomley said that 85% of on-site accidents and lost time injuries place, but it doesn’t stop a guy from doing his job as he wants. It’s were behavioural – and that project managers, crew chiefs and up to us, as managers, to develop that safety culture and ensure foremen had an exceptionally important role to play in ensuring that it is ingrained,” Bottomley said. workers did their bit. He said that workers should be encouraged to point out safety issues they felt were relevant and, “When you sit down and analyse the figures, it’s surprising. It’s where appropriate, action be taken “YOU CAN HAVE THE BEST SAFETY not, as you may expect, a lack of by his supervisors and the issue TRAINING SYSTEMS AND POLICIES IN support, lack of proper training PLACE BUT IT DOESN’T STOP A GUY DOING dealt with. ACC’s system of Don’t THINGS HIS JOB AS HE WANTS” Walk By cards and safety notices or lack of task briefing. In some worked well, as did morning Tool cases, it’s as high as 94% - where workers simply don’t wear their gloves, take unnecessary risks,” Box meetings where foremen briefed their workers about the day’s plan of action. he said. Worker confidence was also key – and workers needed to know ACC puts each of its workers through a six hour course to ram that they had the backing of their superiors should they raise safety home the company’s safety message. “We’re very keen to develop and retain our safety culture. ACC’s concerns. There wasn’t, Bottomley said, much point in having a attitude is that there is nothing so important or urgent that we system in place and workers being to afraid to use it because they feared they’d be shouted at, physically abused or even sacked. cannot take the time to do it safely,” he said. “They need to know that they have the full back up of In high stress, noisy environments with a multitude of different languages spoken, communication was a key component in management. If issues are pointed out, it’s important they see that developing a safe working environment. Construction sites were, something is done about it. They action is stopped, addressed, and he said, no place for complacent attitudes or relaxed safety mea- a notice posted about it. Everything happens before the notice sures. Heightening worker perception to the dangers of tasks at is posted,” he said. MAY 22–28, 2010 CONSTRUCTION WEEK

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SITE VISIT SAUDI BINLADIN

JEDDAH PRECAST CONSTRUCTION WEEK VISITS A LARGE CONCRETE WORKS, OWNED AND RUN BY THE SAUDI BINLADIN GROUP By Greg Whitaker

ou went where?’ was the general reaction on returning from our latest site visit. Going to a precast and post-tensioning yard would not normally be considered anything exceptional, even one which is around three times the size of a typical operation. However, this yard is situated just past the black, basalt rocks outside Jeddah in Saudi Arabia – which at the best of times is hardly media friendly, but what made this site visit particularly exciting was the sign outside the gate: Saudi Binladin Group for Industrial Precast. Anybody thinking of doing business in the kingdom, and in Jeddah in particular, needs to know about the Binladin Group. Pretty much every building in the gateway city has something to do with the ﬁrm, which has interests in every step of the construction process, from raw materials through to building management. There is a whole street in the city with ofﬁces for the company and on the outskirts there are enormous factories and holding yards. Bizarre, black terrain surrounds Jeddah, apparently caused by prehistoric volcanoes, and it is a 45-minute drive through this jutting, basaltic landscape to get to the Binladen MAY 22–28, 2010 CONSTRUCTION WEEK

THE PLANT MANUFACTURES PRE-CAST CONCRETE.

BINLADIN GROUP site. Once there, there is time to enjoy some Turkish coffee with Ahamed Omer Bahareth, a manager at the site who welcomes us and explains brieﬂy how this precast facility is a very important part of the Binladin Group operation. He then introduces us to Eng. Said A. Al-Khair Al-Hloul who agrees to show us around the plant. Security is tight, but everybody at the plant seems keen to show us what they are doing and what and how the products will be used. There is a lot of work for the factory to do 36

CONSTRUCTION WEEK MAY 22–28, 2010

as well. Currently it is supplying a number of projects across the country, including the Princess Noura Bint AbdulRahman University for Women in Riyadh, a vast female-only campus under construction in the country – itself a symbol of how much the kingdom has progressed in recent years.

BATCHING First of all, we see huge piles of aggregate being shoveled up by a pair of Liebherr wheel loaders for processing in a large 300tph

The Saudi Binladin Group (occasionally spelt ‘Binladen’) is a multinational construction conglomerate and holdings company based in Jeddah, founded by one Mohammed Binladin back in 1931. There are not many construction contracts in the Western Region that don’t involve this group in some way or another. Current projects include work for the Princess Noura women’s university, the King Abdullah Knowledge Economic city, and the 775km Al Quassim motorway, as well as many others.

THE EXTENSIVE YARD USES GANTRY CRANES TO MOVE LARGER PRE-CAST PIECES. THE CONCRETE IS CAST IN MOLDS AND CAN BE GIVEN A SELECTION OF FINISHES.

batching plant, branded ‘Master Tec’. These machines graze the piles night and day, and as Eng. Said explains, German machines were picked for perceived reliability. In fact there are several machines from the same ﬁrm: the transit mixers on Renault truck chassis are also Liebherr, as are the dozen or so tower cranes that work elsewhere on the site. It is worth noting that the basic materials such as the aggregate and raw steels are supplied by a company called CPC Holdings, another major operation in the Western Region’s close-knit business community, and closely associated with the Binladin Group. Once a suitable mix is achieved, the concrete is then applied to the molds. These molds are obviously very large, and it seemed that a fair amount of manual ﬁnishing work was needed to smooth the concrete down.

Interestingly, it isn’t just grey old concrete that is poured and cast here. Eng, Said is only too pleased to show off the many and various types of stone that can be produced, with a variety of effects that mimic the look of quarried rock. Once the product has hardened, moving it becomes an issue, as each section could weigh several tons. For this, a number of large overhead gantry cranes are employed to hoist the sections outside for preparation and ﬁnishing. Making precast sections is rarely as simple as just pouring concrete into a mold, of course. First, the rebar needs to be shaped and a frame made for the concrete form. To do this, the company has bought several CNC-controlled bar benders. If you haven’t seen one before, steel bar is fed onto a machine resembling two large, ﬂat

discs, with a pair of chucks to keep the bar in place. The discs then spin in opposite directions, bending the bar to a preset pattern, and before you can think about what has happened, another bar has been fed in and the process repeated. Mind you, a lot of shaped metal is needed for the amount of work which is carried out by the plant. If there has been a slowdown in the industry it certainly isn’t evident here. Out of the warehouse and into an outside yard, the scale of this operation becomes apparent, as about a dozen railmounted gantry cranes are ready to winch the iron into place, so that it can be made into forms. The lunch whistle has just blown, so the yard was quiet, but that allowed us to clamber over the steels in relative safety. As an aside, there are a number of different brands MAY 22–28, 2010 CONSTRUCTION WEEK

THE TEAM AT THE PLANT DOES ITS OWN PREPARATORY METAL WORK.

of gantry crane here, we noted labels such as Cimolai, Hangzou Hoisting Machinery and Pellegini – suggesting that the amount of plant in the yard has increased as it has got busier over the years. Currently, the yard appears to be in a state of organized chaos, with curved bars sitting in piles, as site welders are working on what appears to be viaduct sections. Welding pile cages and the like can of course be done automatically, but complex structures such as these need a steady hand and a buzz from the MIG.

POST-TENSION The factory also deals with post-tensioning, a construction method where cables are cast into concrete and tightened up ‘post’ the event. We met a young chap working 38

CONSTRUCTION WEEK MAY 22–28, 2010

a lathe, which turned the threads on the bars, and could also be used to cut the bespoke nuts and plates required for the high-tension beams. The work was fast and furious, and it was clear that the ﬁttings are tailored for an individual thread, rather than just being off-the-shelf parts, similar to the ball joint on a car. Interestingly, a couple of tower

cranes had been built up inside the units in order to service the radius of the outside yards. Outside again, some men were ﬁnishing the precast units prior to shipping. As well as checking the quality and sizes, a man gave each cured unit a blast with a pressure washer. After this, a couple of forklifts shifted the units into neat rows, from where they will be shipped out to site on one of a number of Volvo FH10 lorries. Once on site, the order that the ‘kit’ of parts arrives should be logical for the site manager to assemble.  Our thanks go to Dr. Faysal Alaquil of CPC Holdings who facilitated Construction Week’s visit to the Saudi Binladin Group plant.

PRINCESS NOURA UNIVERSITY Work has started on this vast university project, situated near the airport in Riyadh. Scheduled to open in 2012, the college is named after Princess Noura Bint Abdulrahman, described as the ‘nation’s favourite aunt.’ Lead contractors are Saudi Oger and Saudi Binladin as well as El Seif Contracting. Johnson Controls have been appointed to handle the district cooling, while Vision Company (owned by the CPC group) will install the rest of the building services.

SPECIAL REPORT KSA ECONOMIC CITIES

THE PRICE OF DIVERSITY THE STATUS AND FUTURE OF SAUDI ARABIA’S RELENTLESSLY AMBITIOUS PROGRAMME OF ECONOMIC CITIES POINTS TO THE COUNTRY’S DESIRE TO DIVERSIFY By Chris Sell

KEC WILL BE LOCATED WITHIN THE CITY OF MADINAH. THE CITY IS EXPECTED TO FEATURE A TECHNOLOGICAL AND ADMINISTRATIVE COLLEGE, THEME PARK, ISLAMIST CIVILISATION STUDIES CENTRE, RESIDENTIAL AREA AND BIOLOGICAL SCIENCES AND HEALTH SERVICES.

n2005,SaudiArabiarevealedits plan to diversify away from an oil-based economy by launching the first of six planned economic cities. Under the direction of the Saudi Arabian General Investment Authority (Sagia), King Abdullah Economic City (KAEC) would rely on private investment rather than government backing. Located on the Red Sea Coast, KAEC would precede a further five cities designed to tackle pressing issues facing the kingdom, such as finding employment and housing for a young and expanding population – 70% of the population is under 30 and half is under the age of 15 – and act as a catalyst to attract foreign investment, global trade and commerce.

“KEC PLANS TO CREATE 20,000 JOBS IN ITS NEW INDUSTRIAL, ACADEMIC, CULTURAL AND COMMERCIAL SECTORS AND WILL ALSO BENEFIT FROM THE UPGRADE TO PRINCE MOHAMMED BIN ABDULAZIZ AIRPORT.” The massive, multi-billion dollar projects would target various industrial and knowledge-based economies and ensure the kingdom’s future is not entrenched solely with oil. To do this, international developers were brought in to attract regional and international investment, as well as provide the technical know-how. Notably Dubai’s

Emaar Properties established its subsidiary, Emaar The Economic City to develop KAEC, while Malaysia’s MMC Corporation was brought in to work with the local Saudi Binladin Group (SBG). However, such ambitious schemes were seen in more prosperous and less ﬁnanciallychallenging times. Not only huge on a physical scale, each required billions of dollars in private investment, and access to such swathes of capital – even in Saudi Arabia – has understandably been curtailed in the wake of the global ﬁnancial crisis. Sagia claim the six cities will contribute US$150 billion to the kingdom’s GDP by 2020. Though this timescale is obviously unlikely, Saudi is seemingly committed to its economic city programme. MAY 22–28, 2010 CONSTRUCTION WEEK

MINING IS ONE OF SAUDI ARABIA SECONDARY INDUSTRIES, THOUGH IT HAS RICH SEAMS OF PHOSPHATES, BAUXITE AND GOLD.

Construction Week takes a look at all six projects and assesses the status of each, and the likelihood each will be built, or reﬂect the pressure of a nervous economy in its ﬁnal guise. Consequently, the ambitious time lines and masterplans set out for all six city-sized developments bears no resemblance to the current state of progress. Each has come in for criticism as observers question the viability of such schemes.

KING ABDULLAH ECONOMIC CITY The ﬁrst and most likely to succeed of all six cities. KAEC bears the king’s name and represent the blueprint for all subsequent cities. Its location, 100km north of Jeddah in Rabigh is designed to capitalise on its Red Sea setting and links to the holy cities of Medina and Mecca. With investment 42

CONSTRUCTION WEEK MAY 22–28, 2010

of over $40 billion the sea port in 2009 “SAGIA CLAIM THE SIX already announced, and it is planned to be CITIES WILL CONTRIBUTE the 168km2 project operational by the first US$150 BILLION TO THE KINGDOM’S GDP BY 2020. quarter 2011. It will is expected to be completed by 2030. THOUGH THIS TIMESCALE IS consist of a multi-purThough sources OBVIOUSLY UNLIKELY, SAUDI pose cargo terminal IS SEEMINGLY COMMITTED and a 10 million TEU close to the project TO ITS ECONOMIC CITY (twenty-foot equivahave questioned PROGRAMME.” lent units) container its ability to attract sufficient investment and speed of its terminal, which will be increased in several progress, the project is going ahead and will phases. Late in 2009 Emaar EC also signed certainly be finished. To put it into context, an agreement with DP World to develop Saudi Arabia is attempting to build a city the and operate the port. size of Washington DC in 15 years. An EPC award for the industrial zone When finished it is expected to house a – which will feature downstream petropopulation of two million and create one chemicals, pharmaceuticals, research and million jobs. It is comprised of six integrated development activities – is expected in components: sea port, industrial zone, central the third quarter 2011. Amr al-Dabbagh, business district (CBD), waterfront resort governor of Sagia has claimed the smelter area, education zone and residential zones. would create 2,500 direct jobs and 7,500 Emaar EC released the finalised design for indirect jobs.

HASSAN AMMAR/AFP/GETTY IMAGES

and 64km2 for non- “[JIZAN’S] INDUSTRIAL ZONE lion square metres. In industrial space July 2009, US-based IS SET TO ACCOUNT FOR MORE THAN TWO-THIRDS – Sagia claims it consultant Aecom OF THE OVERALL PROJECT, will create 55,000 was appointed as WITH THE ALUMINIUM jobs and comprise the project manager REFINERY EXPECTED TO a population of for the $8 billion city. CREATE 12,000 JOBS.” 300,000, with An IPO (initial public 1.16 million visitors and an additional offering) has been expected for a number 215,000 jobs by 2060. In February the of years but as yet there is no time frame General Authority of Civil Aviation (Gaca) for this. The city is expected to feature a announced it had signed an MoU with technological and administrative college, Al-Mal to redevelop Hail International theme park, Islamist civilisation studies Airport to serve the economic city. Hail centre, residential area and biological sciwill also include agriculture and food ences and health services. KEC plans to processing, mining and commerce and create 20,000 jobs in its new industrial, infrastructure. academic, cultural and commercial sectors Until now, of all six cities, Hail was and will also benefit from the upgrade to identified as the most likely to stall or face Prince Mohammed Bin Adbulaziz Airport. significant re-modelling as those close to Up to 30,000 residential units and 150,000 the scheme question its ability to attract inhabitants are planned. sufficient investment. However, enabling Bids for the construction of first stage works are ongoing and bids are expected residential projects including a gated villa to be submitted in Q3 2010 with an award community and apartments are to be subdue at the end of the year. It is expected to mitted in the third quarter 2010. Bids for the be completed in 2025 second stage are expected to be submitted in the fourth quarter 2011.

KNOWLEDGE ECONOMIC CITY

JIZAN ECONOMIC CITY

Knowledge Economic City (KEC) in Medina was the third city to be launched back in June, 2006. The developer, Seera City, is a consortium comprised of the Savola Group, PMDC, Taibah Investment & Real Estate Development Company, Quad International Real Estate Development Company and the King Abdullah Foundation. The 4.8 km2 site is expected to take 10-12 years to complete and will have a built-up area of nine mil-

Developed by a consortium led by SBG and the MMC Corporation, the group has been awarded a 30-year license to develop the site on the Red Sea coast, 60 km north of Jizan. It will be spread over 117 km2. It is set to contain a port, aluminium smelter, steel plant, copper processing plant, oil reﬁnery, ﬁsh processing and agricultural factories as well as a commercial business and cultural centre. An IPO is expected to be launched

HAIL ECONOMIC CITY One of the most troubled economic cities. Hail – also known as Prince Abdulaziz bin Mosaed Economic City, in the northerncentral region is being developed as a transport and logistics hub, with the aim of attracting up to $8 billion in investment over 10 years. The original developer, the local Rakisah Holdings was replaced by Kuwait’s Al-Mal Investment Company in 2008, following a number of years of minimal activity. Previously, two ﬁrms, KEO International Consultants and Singapore’s Jurong International were understood to be in the running for the contract. However at the end of April it was announced that a possible consultant to draw up the masterplan had been selected. The contract had been expected to be awarded in November 2008. Covering an area of 156km2 – 92km2 for industrial use

KAEC WILL BE 100KM NORTH OF JEDDAH, ADDING TO THE KINGDOM’S PORT CAPACITY ON ITS WEST COAST.

MAY 22-28, 2010 CONSTRUCTION WEEK

ULTIMATELY KAEC WILL BE A 168KM2 PROJECT.

CONSTRUCTION WEEK MAY 22–28, 2010

value of $30 billion and a tentative date for an initial EPC contract has been mooted as the ﬁrst quarter 2011, with completion earmarked for the end of 2020. This could clearly change however.

RAS AL-ZOUR ECONOMIC CITY Also known as Ras al- Zour Resource City, it will be developed in the Eastern Province on the Gulf Coast and, as beﬁtting its location will be dedicated to downstream industries. The site will capitalise on the existing export port at Ras al-Zour and surrounding mineral deposits, notably AlJalamid phosphate mines in the north and Al-Zabira bauxite mines in the northeast. Moreover the site is already the location of an aluminium smelter complex and a phosphate and fertiliser complex being developed by the Saudi Arabian Mining Company (Ma’aden). Like Tabuk, there is no speciﬁc timeline apart from an EPC contract due in Q1 2011, and a proposed completion date of Q42020. It has an estimated value of $25 billion. OMAR SALEM/AFP/GETTY IMAGES)

in mid-2010 by SBG and MMC Corporation of the city, such as the residential and CBD to raise funds to part-finance the projects districts are still in the early design stages within the city. While the project is cur- with a tentative timescale of Q1 2012 for an rently underway, there has been some delay EPC award. Following a number of delays, to the power plant due to some develop- Saudi Aramco was awarded the contract to ment changes to the aluminium smelter. build the Jizan refinery and will be comThe EPC winner, CPI pleted by 2015. “TO PUT IT INTO CONTEXT, Power Engineering Although their SAUDI ARABIA IS Co (CPIPEC) is in the locations have been ATTEMPTING TO BUILD process of re-subannounced, the final A CITY [KAEC] THE mitting the budget. two economic cities SIZE OF WASHINGTON Parsons Brinckerhave not been offiDC IN 15 YEARS.” hoff International cially launched by and Mott MacDonald are consultants on Sagia unlike KAEC, KEC, Prince Abduthe scheme. The industrial zone is set to laziz bin Mosaed and Jizan, although some account for more than two-thirds of the details have been released, allowing a clearer overall project, with the aluminium refinery understanding of their possible function expected to create 12,000 jobs. In July 2009, and scope. construction work began on the power substation on a 40,000 m2 plot, and is expected TABUK ECONOMIC CITY to take 24 months. Within the industrial Sagia is currently carrying out a study inzone, the detailed design of the port has been house for the economic city in the northern completed and is undergoing final review. region of Saudi Arabia. The development The tender award for the construction of will have residential and commercial disthe harbour is on hold while the tenants tricts, resorts, medical city, colleges and requirements are finalised. Other aspects universities. It has an estimated investment

SHOWCASE KAUST RIGHT: The university during its construction phase back in early 2009. BELOW: The King Abdullah University of Science and Technology (KAUST) is Saudi Arabia’s ﬁrst LEED-rated project and the world’s largest projects with a platinum rating. It was recently ranked in the top ten green projects in the world by the American Institute of Architects (AIA). BELOW RIGHT: A development model of the university’s solar tower, which has been designed to harness evergy from the sun and contribute to the structure’s use of renewable energy.

CONSTRUCTION WEEK MAY 22–28, 2010

LEFT: The building’s solar tower draws energy from the sun, resulting in 27.1% annual energy cost savings, 7.8% on-site renewable energy. BELOW: The building has enjoyed a smooth transition from drawing to reality. BELOW LEFT: The project delivers exceptional performance in the areas of water, with 100% waste water reusage and 42% water reduction. BELOW RIGHT: The Arabic Bedouin tent inspired designers to create a monumental roof system that spans across building masses to block sun on building facades and into pedestrian areas. An estimated 80% of glazing is shaded year-round by a masharabiya screen.

KING ABDULLAH UNIVERSITY OF SCIENCE AND TECHNOLOGY (KAUST) Saudi Arabia’s King Abdullah University of Science and Technology (KAUST) has been ranked one of the world’s top ten green projects by the American Institute of Architects (AIA). HOK designed the 6.5-million ft2 campus, which consists of 26-buildings, on a 9,000-acre site along the Red Sea, 50 miles north of Jeddah. Solar panels and heating systems feature widely on the site, as does shading designed to block the sun from buildings and pedestrian walkways. HOK design principal Bill Odell said that since much of the research due to be conducted at KAUST would relate to the development of renewable resources, it was only ﬁtting that the campus was developed with sustainable initiatives in mind.

MAY 22–28, 2010 CONSTRUCTION WEEK

PRODUCT FOCUS SECURITY

PLAN AND PREPARE SITE SECURITY AND HEALTH AND SAFETY ARE PART OF THE SAME ISSUE AND SHOULD BE HANDLED TOGETHER By Elizabeth Broomhall

CAMERAS CAN MONITOR DANGEROUS ZONES THAT SECURITY GUARDS WOULD NOT BE ABLE TO PATROL WITHOUT BREACHING HEALTH AND SAFETY.

olcanic ash disruption from Iceland, vandalism on site, theft, and damage to property as a result of fire. These are just some of the unforeseen challenges faced by today’s construction industry in the GCC. As if the pressures of achieving sustainability in the context of a global recession aren’t enough. Companies in the region are under very little obligation to maintain tight security on their construction sites. Unlike health and safety, there are no penalties or sanctions for companies who do not prepare for say, a natural disaster. Though the UAE penal code does enforce some level of security, companies need only secure their sites enough so as to protect their workers from injury or death, a statute which may be widely interpreted. Then there is the added impact of a slowed economy, which as well as slashing security budgets, increases the safety risks to properties and structures left unsold or unfinished respectively. These factors in mind, it is easy to understand why only 38% of businesses with between two and just under 10,000 employees have an emergency plan in place in the event of theft, vandalism, a fire, medical emergency or other “workplace disaster”, according to research from the Ad Council. The good news is that the industry is starting to become more 48

CONSTRUCTION WEEK MAY 22–28, 2010

security-conscious. Amid oil spills, tsunamis and volcanoes, recession and economic volatility, the industry cannot afford to be complacent, and it has started to realise that health and safety officers alone cannot respond to the wide variety of possible workplace disasters, and that the risks associated with these disasters are much higher than was once thought. But while change never happens over night, many firms continue to deal with security and health and safety independently because police investigations are dealt with separately from safety officer’s reviews. Perhaps, as the industry veers toward the beginnings of a more standardised safety culture, now would be a good time to take an integrated approach to safety and disaster planning? Dodsal’s HSE director and vice president of the Emirates Safety Group Garry Crighton, is certainly in agreement. “Taking an integrated approach brings quality into safety,” he said, “this should include security and preparation for disaster, particularly since the international standard for security ISO/PAS 22399 is heading our way.” Compliance with international standards it seems, have become increasingly popular across the GCC construction industry as a means of separating leading suppliers from their rivals. But according to Claymore Security and Safety Consultants’ managing director Hussain Alyasi, the benefits of taking an integrated approach

to safety and security have more to do with site efficiency, costeffectiveness and safety. “In my opinion, safety and security should be handled together,” he says. “When construction firms have to use two different companies for safety and security, often these companies will make contradicting recommendations, creating a workplace that is less safe, less efficient and more expensive to maintain.” Unfortunately, it is very rare for safety and security consultants to inspect a site which has been broken into or vandalized, as this is considered to be a police responsibility. Indeed, they tend only to be approached to carry out an independent review where police suspect that formal health and safety standards have been neglected. This gives rise to two additional arguments for a single approach to INTEGRATING SAFETY AND SECURITY IS LINKED WITH COST EFFICIENCY. safety and security. Firstly, authorities are likely to report accidents in criti“IN MY OPINION, SAFETY AND SECURITY encounter difficulties when cal site areas (and manage SHOULD BE HANDLED TOGETHER. deciphering where safety health and safety) while WHEN CONSTRUCTION FIRMS HAVE TO ends and where security at the same time ensuring USE TWO DIFFERENT COMPANIES FOR begins . Secondly, establishfull site security. SAFETY AND SECURITY, OFTEN THESE ing whether an employer’s Further, an integrated COMPANIES WILL MAKE CONTRADICTING duty of care extends to wireless systems can make RECOMMENDATIONS, CREATING A WORKPLACE THAT IS LESS SAFE, LESS protect employees against sure that a site does not EFFICIENT AND MORE EXPENSIVE TO intruders, natural disasters neglect health and safety MAINTAIN” and other non-typical safety in the process of maintainrisks may be complex. ing security. For example, According to Richard Lang, managing director of British-owned they can monitor dangerous and unlit zones which security guards Tag Guard Systems: “In many cases, the risks faced by site owners are would not be able to patrol without breaching health and safety as much to do with health and safety as theft and vandalism.” regulations. Wireless, they are also not subject to cable damage, Some would argue that no company can be blamed for not inte- reducing the chances of an on-site electrical fire and making them grating health, safety and security where there is no product better suited to construction sites specifically. available to help them do so. Only recently have systems which Integrated wireless systems are also designed to be particucan provide protection against accidental, on-site (health and larly useful for protecting temporarily vacant sites or completed safety) risks as well as those resulting from external, criminal or structures, which are common during periods of recession when other factors (security risks) been available. Increasingly popu- properties are harder to sell and projects are dropped half way lar are integrated wireless systems, otherwise known as a com- through construction. Requiring no power supply, the systems bination of wireless perimeter intruder detection and wireless remove the need for the power to be left on, which in itself can be a safety hazard, and, with greater efficiency than traditional CCTV systems. These technologies can establish a perimeter around a construction systems, reduce the risk of arson that would otherwise be much site in much the same way as security fencing, while patrolling the more difficult to prevent. Access control systems can also maintain site-security at the same site for security breaches and safety risks in a similar manner to a security guard. But, more efficient than traditional security systems, time as ensuring health and safety. Security solutions provider G4S they can monitor an entire perimeter, 24-hours a day, even when for example, a 19-year-old company that provides security, safety lighting is non-existent or low, improving a company’s capacity to and project management solutions in one hit, says its access control system has the double benefit of guaranteeing site security and improving workplace safety. Based on the idea of worker identity cards, the system monitors and controls site-entry to keep out potential intruders, while monitoring worker numbers and whereabouts in case of a fire, and keeping track of worker training records to ensure staff are competent when carrying out their duties. Of course, no one product can possibly protect a construction site from natural disaster, theft, vandalism, fire, medical emergencies and power cuts. No one product can protect a company from an array of workplace disasters while at the same time ensuring all company health and safety standards are being met. More imperative, is the need to recognise the importance of site security in light of health and safety regulations, and ensure risk management strategies compliment each other as the boundaries between safety and security become more blurred.  CCTV CAN WORK IN LOW LIGHTING. TECHNOLOGY CAN BE PLACED ON SITE. MAY 22–28, 2010 CONSTRUCTION WEEK

SECTOR FOCUS MALLS

SHOP ‘TIL YOU DROP THE DEVELOPMENT OF SHOPPING MALLS IN THE REGION SURGED IN RECENT YEARS, BUT MANY OF THE MALL PROJECTS THAT WILL BE COMPLETED ARE COMING TO A CONCLUSION By Carlin Gerbich

rom their humble beginnings as simple extensions to supermarkets and key department stores, shopping malls have become more than simply a place to buy clothes and search for a bargain. Megamalls have sprouted up everywhere, offering shoppers more variety and an ever widening range of associated activities to keep them entertained. Malls are no longer simply places to shop: they’re one-stop entertainment, shopping and social venues. Dubai’s landmark Mall of the Emirates, with its indoor ski slope, Dubai Mall – with its aquarium, underwater zoo, multiplex 50

CONSTRUCTION WEEK MAY 22–28, 2010

cinema and four cornerstone retailers, and the newly opened Mirdif City Centre mall, with its Leeds Gold rating for environmental design, are premium examples of just how far mall development has advanced in recent years. With other countries in the GCC and MENA regions set to follow suit, the future of mall design is an exciting one. Majid Al Futtaim Properties is one of Dubai’s leading mall development and management companies – and senior vice president of Project Management Jonathan Emery joined the team in 2008 to re-establish an internal project management department, set up in response to an increased work load for the company in the UAE and MENA region. It is Emery’s job to pull developments, such

as the recently opened 196,000m3 Mirdif City Centre, through to delivery. Even when faced with the double whammy of an ambitious, immovable deadline and a construction boom that put a premium on some building supplies and packages, Emery’s team was able to manage costs, keep suppliers happy and move at a speedy pace to deliver the project on time. “Having built malls before we sort of knew some of the risks associated with a project this size anywhere in the world, but also some of the particular local issues. Essentially, we worked hard at mitigating those risks so we identiﬁed them at a very early stage and put in place the mitigation measures.”

“RETAIL SALES IN THE UAE ALONE HIT $107.26BN IN 2009, RISING TO A STAGGERING $150.52 BN BY THE END OF 2014” “We worked very hard with the retailers and our leasing team, as well as our construction team to explain to them our ambition to open on March 16 and we put in extra resources so that we can turn around their designs and supporting technical documentation early,” says Emery. Constant climate conditions and terrain provide unique challenges for mall developers in the Middle East. Mirdif has its own cooling plant and sub-station, but a number of passive elements were designed into the building by architects, to minimise the draw on demand from the HVAC systems. A minimal use of glass reduces demand on the cooling systems, while natural light, interior landscaping and ventilation help create a comfortable environment. Mirdif is also the ﬁrst mall in Dubai to achieve Leed Gold status for its ecological design and construction, due in part to its environmentally-friendly HVAC systems. As Richard Reid, senior vice-president of Majid Al Futtaim Properties, explained,

cooling the centre required a considered approach. “The servicing of a large building from central locations is always a challenge to the architecture; the impact on visual aesthetics both inside and outside the mall from exposed services needs to be addressed by screening and co-ordination. The concept design philosophy was to use the roof for services distribution, causing the primary structure to be increased to allow for the considerable load from the primary header services.” Majid Al Futtaim will implement similar systems with its future developments throughout the MENA region. Along with its three key Dubai malls, and seven further malls in Bahrain, Sharjah, Ajman, Oman (Muscat and Qurum) and Egypt (Alexandria city and Maadi), Majid Al Futtaim also has plans for another six malls. Work on one of Africa’s largest malls, a super regional mall in the 6th October area of western Cairo, is due to start on the project later this year. At 185,000m2 it will be of GLA on completion.

Cairo will also get a mid range mall (50,000m2 GLA) in central Cairo and a further community Mall in Eastern Cairo. Fujairah will get a community mall, construction on the 28,000m2 Sohar City Centre mall in Oman, will be completed in 2011. Qatar’s Downtown Entertainment City in Lusail, Doha, is a joint venture between Majid Al Futtaim and Abu Dhabi Investment House, and includes a super regional mall with Carrefour hypermarket, hotels, ofﬁces – and will form the heart of the region’s US $275 million (QAR1 billion) 1 million m² mixed-use development, scheduled to open by the middle of 2012 – while new projects in Saudi Arabia (the $50bn King Abdullah Economic City and Madina’s $8bn Knowledge Economic City) will call for equally innovative ecological and commercial ideas. As a new development, designers are able to stipulate the roading infrastructure required. Dubai Mall, with 1000 shops, at present, and a total ﬂoor area of 12 million ft2, the fourstorey mall not only needed a network of roads for the public and taxi services, but service roads for management staff, suppliers and maintenance workers. Public access to the site from Sheik Zayed Road, which runs parallel to the Gulf Coast and right through the heart of the city’s sprouting Al Satwa area, funnel cars in to the mall’s three car parking areas and their 14,000 car parks. Road links back to the main highway are still underway, while the Dubai Metro stop at the nearby Burj Khalifa delivers shoppers almost to the door. An expansion project at the iconic 222, 967m2 Mall of the Emirates is adding an extra 750 car parks and 10,000m2 of retail space for new shops.  MAY 22–28, 2010 CONSTRUCTION WEEK

CITY FOCUS JUBAIL INDUSTRIAL CITY

BIG INVESTMENT TAKES FLIGHT JUBAIL IS IN THE MIDST OF A FLURRY OF PROJECTS COVERING AN INCREASING NUMBER OF SECTORS By Ben Roberts

t is nearly a year to the day that it was announced that more than SR54 billion was to ﬂow into Jubail Industrial City, at a grand ceremony inaugurated by Custodian of the Two Holy Mosques King Abdullah Bin Abdulaziz Al-Saud and included, among others, HH Prince Saud bin Abdullah bin Thanyyan, chairman of the Royal Commission for Jubail and Yanbu (RCJY) and Jubail Governor Abdul Mohsin Al-Otaishan. This was on top of the SR174 billion value of active projects, and continues the “great interest to get the maximum beneﬁt from the state resources by allocating the biggest budget for development in the history of the country,” in the words of the chairman. The Royal Commission for Jubail and Yanbu lists 30 projects scheduled to start 52

CONSTRUCTION WEEK MAY 22–28, 2010

last year in the industrial city twinned with Yanbu, and the last eight months have seen an astounding number of projects either award contracts or start. These projects are split between the familiar stories of industrial plants springing up, as well as launching big plans for its residential district, including schools, apartments and a culture centre. The next eight months show no sign of slowing. “Jubail is a little more advanced in the number of industries compared to Yanbu,” believes Abdullah Ibrahim, general manager at Riyadh-based National Contracting Company (NCC), “but they are twinned and based around petrochemicals and oil.” NCC is one company taking advantage of community-focused projects. It is into its ﬁrst month building a girl’s elementary school in the city, a US $21 million joint project with the construction arm of its

parent company, Rezayat Co. Ibrahim is overseeing both teams. “The project was signed in the last week of April and started the ﬁ rst week of May at the mobilization stage. We’ve actually merged the teams, there’s no real separation of responsibility,

SUMMER JOBS PROJECTS STILL UPCOMING May: Solid waste collection‚ disposal & general sanitation services O&M (FollowOn No. 10) June: Site development of Mardumah district June: Operation and maintenance for the Royal Commission Medical Center and Health Care Clinics at Madinat July: Road linking to Ras Al-Zawr, phase 1

PROJECTS IN JUBAIL ARE ATTRACTING SIGNIFICANT INVESTMENT AS INFRASTRUCTURE IS BUILT UP AROUND THE CITY’S INDUSTRIAL BASE.

and there is a central source for procurement. We’re trying to utilize the experience of each company for better output, sourcing manpower, getting resources – to cross reference between them.” Ibrahim adds that infrastructure related projects have been ongoing and now require expansion. “The more growth in industries, the more requirements for accommodation,” he says, adding that a contract for a clinic has already been awarded. Rezayat itself has been busy with the latest smaller projects. At the end of last year it won a contract to build a 2,261 m 2 Social and Cultural Center City with its ancillary facilities. Dammam-based Al Kifah Contracting Co. has also targeted population projects, last year winning a $37 million contract to build nine, four-storey family apartment buildings, including one mosque, located in Makkah South Sector in Jubail Indus-

rounding petrochemicals and oil. It has a greater number of countries are OTHER BIG PROJECTS: meant represented by the companies looking to 1. Al Bayroni Ammonia Plant procure contracts. Client: Al Jubail Fertiliser Company At the beginning of this year Daelim Contractor: KBR Industrial Company, a Taiwanese fi rm, Started: Q4 2009 won the contract to build a low-density Expected: Q1 2011 polyethelene plant in Jubail. S I Kim, general manager for the Damman office, said 2. Development of Jubail 2, stage 2, the construction of the plant in was ‘much phase 1 – 75 million higher’ than the $300 million initially Client: Royal Commission for Jubail and reported, though he would not be drawn Yanbu (RCJY) for the exact figure, which could be more Main Contractor: Al Harbi Trading than double. From: Q3 2009 Actual The company is looking at this projTo: Q4 2011 Actual ect exclusively in this specific region of KSA. Kim adds that big, general projects 3. Amines Plant – Q1 2010 in Jubail had been a long time in the planClient: Saudi Kayan, part of Saudi Basic ning and had been delayed, but now they Industries Corp are coming to fruition, with many more Building of an amines plant that will to come. produce 210,000 tonnes per year in The delays he says to CW, were “not conJubail Industrial City nected to the current market [downturn]. CTCI Corp. was awarded the engineering, We have a special interest in oil and gas procurement and construction contract and petrochemicals and we have been in January. preparing for several projects.” One unforgettable announcement from last year was for the new $1.1 billion petrotrial City. The construction includes roads chemical plant, tendered by Saudi Internaand parking, grading and storm drain- tional Petrochemical Company (Sipchem) age, sanitary waste-water system, potable with Hanwha Chemical Corporation and and fi re water distribution system, sew- Exxon Mobil Corporation winning the age treatment and irrigation system, and main contract and technical consultants electrical power system. The project total contracts respectively. area is 33,000 m 2 approximately. Hanwha Chemical Corporation and SipProject manager Mohammed Kalim con- chem signed a joint venture agreement, firmed to CW that it began laying the foun- with 75% owned by the latter. The facilidations and pre-cast work last November, ties will produce 200,000 mt/year of ethadding that the company would in fact ylene vinyl acetate and 125,000-mt/year build everything, including the utilities of polyvinyl products, and the plant is infrastructure. “All [utilities] will begin scheduled for the end of 2013. No such delays after the foundation either for the and pre-cast stage,” “THE MORE GROWTH IN 380/115 kV 8AB he says. INDUSTRIES, THE MORE REQUIREMENTS FOR Another project, the Substation, an ACCOMMODATION,” building of a $4 million $80 million projpassport building in ect won by Saudi Jubail, also hints at an increased desire Services for Electro Mechanic Works Co. to upgrade facilities due to an expected Ltd. (SSEM) ten months ago. The scope of increase in residents. Kuwait-based Al work of this project includes engineering, Khonaini Trading & Contracting won the procurement and construction (EPC) of contract in Q3 in 2009 and is now half- 380/115-kV Power Substation at the comway through a construction period that munity area in Jubail Industrial City. still aims to meet its target of the fi rst Some projects are already out for tender, quarter next year. including at least one other additional But such deals remain on the periph- large petrochemical plant, according to ery compared to the mega projects sur- other sources.  MAY 22–28, 2010 CONSTRUCTION WEEK

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Future Pipe Industries Group (FPI) was established in 1984. Over the past two and a half decades, the company has evolved from a local manufacturer to an international company within the fiberglass pipe industry, with headquarters in Dubai. Designing, manufacturing and supplying fiberglass pipe systems, its operations include nine factories and a global network of sales offices. The firm’s customers include developers and end users in oil, gas, water and industrial industries, with a particular demand for the company’s products in the GCC where fiberglass pipe systems have become a popular substitute to other types of pipe systems fabricated with traditional materials. Having evolved over the last 50 years, fiberglass has become a product of choice for many construction firms for a number of reasons. Firstly, as a lightweight material, it incurs much lower transportation and installation costs than steel and concrete. Anti-corrosive and durable, it is also able to survive a variety of atmospheric conditions with minimum leakage. In addition, it has a better hydraulic performance than steel, ductile iron and concrete, and is

CONSTRUCTION WEEK MAY 22–28, 2010

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DIALOGUE RAHAMATHULLA Moving with the times Intelex Technologies’ HSE and Sustainability Specialist Rahamathulla caught up with CW to explain about the growth of HSE management software in the region and the need to keep up with fast-changing HSE legislation

By Elizabeth Broomhall Tell me a bit more about EHS software solutions.

HSE management software is a powerful tool where businesses want to ensure employee safety and compliance with legislative standards. Organisations tend to have fewer safety-related incidents, more streamlined HSE processes, as well as clearer corporate HSE performance metrics. It can also help companies manage their environmental impact, particularly useful to construction companies. For example, they can monitor air emissions and wastewater efﬂuent discharges, track waste from the cradle to grave, check their own compliance with standards and report on and analyse environmental parameters. It also helps companies keep up with legal standards. How do the systems ﬁt in with the new health and safety regulations coming into force in Abu Dhabi?

Our systems are built on global best standards like ISO 14001, OHSAS 18001 and regulatory standards like OSHA, US EPA and HSE Executive. Recently, we mapped Intelex features and functionalities with Oman Regulation on Occupational Health and Safety. In the future, we plan to analyse and map the Abu Dhabi regulations with Intelex and conﬁgure the reporting templates into our system. How cost effective are they?

Pricing depends on modules, business area and company size. It ranges from US $15,000 to US $ 700,000 depending on a company’s individual requirements.

information is not secure, and there are no notiﬁcations to let remind HSE managers when training is due. Generating and analysing reports manually can also be tough and time consuming. Surely other products and services need to be prioritised?

Tracking HSE performance has become a priority now for a number of reasons. Firstly, information needs to be reported to shareholders and stakeholders and this can be inaccurate without the right systems. Second, translation of HSE data into management key performance indicators, especially those related to risk (costs) and opportunities (revenue) can be difﬁcult without effective reporting. More obvious reasons are the increasing pressure on companies to comply with local regulations and standards and to improve health and safety practices for the sake of their company reputation. Where are your biggest markets within the ME?

Qatar, Saudi Arabia and the UAE. Are many companies taking advantage of your solutions?

Yes. Occasionally companies are reluctant to purchase these types of systems typically because they’re used to the “old way” of doing business, and they don’t realise that their approach makes it more difficult to comply with rapidly changing legislation. Sometimes they don’t have the time to conduct an assessment of HSE vendors or prepare packages for management, as they are literally too busy putting out fires - fires that HSE software would reduce or eliminate!

Are they easy to implement and use?

Nowadays, solutions tend to be web based, allowing the implementation to be done within weeks or months (not years). Employees do need training on the system but that is all included in implementation. The HSE Manager will decide who has access to the system but there are some reports which everyone can have access to. How are companies managing without these systems?

Most companies are still using paper based systems or spreadsheets to manage health and safety, but this can cause problems when collating information from different departments or projects. It also means the 56

CONSTRUCTION WEEK MAY 22–28, 2010

Any market segments you plan to target in the future?

The Middle East is still an untapped market and we have plans to expand into the North Africa region.

Intelex Technologies Inc. has been a global provider of health, safety, environment and quality software for 17 years. The ﬁrm’s main role is to help organisations comply with government regulations and industry standards. Intelex is currently growing its Middle Eastern portfolio, its biggest clients in the region including Laing O’Rourke, Dubai Supply Authority and Sarooj Constructions.

What do you expect for H2 of 2010?

So far this year has been really exciting with some big projects, but there is still a lot to come. We are in a much better position than last year. When will you next be showcasing your products?

We are hoping to exhibit at the Middle East ﬁre and safety conference in Dubai this September.

On May 29th, Construction Week will reveal the GCC’s 50 Most Admired Companies. From a shortlist of over 250 companies, our editors have spent the past three months studying a range of companies across all sectors of the industry – developers, contractors, engineers, suppliers and product manufacturers. Each company has been examined carefully, looking at its proﬁts, management, leadership,

innovation, technological excellence, R&D and the range of projects it has been involved with. The publication of “The GCC’s 50 Most Admired Companies” is the most anticipated event in construction publishing this year, and will take place both in print on Saturday 29th May and online at www.constructionweekonline.com from 9am on the same day.

To ensure you are part of this historical issue, contact me immediately. Jason Bowman, Publishing Director

T: +971 4 210 8351

E: jason.bowman@itp.com

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